European Union – Sector Dialogues

FINAL REPORT 2014 - 12 - 18 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano- Industry

CONTACT INFORMATION Project National Directorate Brazilian Ministry of Planning, Budget and Management + 55 (61) 2020.8527/1704/1823 [email protected] www.sectordialogues.org

Carlos Leonardo Teófilo Durans Brazilian Ministry of Development, Industry and Foreign Trade Secretariat of Production Development General Coordination of Aerospace and Defense Industries +55 (61) 2027-7915 [email protected]

Igor Alonso Portillo Senior External Expert +34 607 339 357 [email protected], [email protected], [email protected]

2 3 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

IntroduCtion...... 7 TABLE OF 1. STUDY PROJECT BACKGROUND...... 9 1.1. CONTEXT...... 9 1.2. GOALS AND EXPECTED OUTCOMES...... 10 CONTENTS 1.3. STUDY METHOdology...... 10 1.4. FINAL REPORT STRUCTURE AND RATIONALE...... 11 2. MICRO & NANO ...... 13 2.1. Small satellite classification...... 13 2.2. APPLICATIONS & MARKET...... 15 3. EUROPEAN SMALL SAT INITIATIVES...... 21 3.1. NATIONAL AND SUPRANATIONAL LEVEL...... 21 3.2. COMPANIES...... 24 3.3. PROJECTS...... 26 4. BRAZILIAN SMALL SAT INITIATIVES...... 29 4.1. NATIONAL LEVEL...... 29 4.2. COMPANIES...... 30 4.3. PROJECTS...... 32 5. OTHER TOPICS – TECHNICAL...... 35 5.1. Launchers...... 35 5.2. LABORATORIES...... 39 5.3. GROUND STATIONS...... 40 6. OTHER TOPICS – non TECHNICAL...... 43 6.1. REGULATION...... 43 6.2. INSURANCE...... 45 6.3. FINANCING...... 47 7. OTHER INFORMATION...... 53 7.1. CONFERENCES and groups...... 53 7.2. special workgroup for small satellites in brazil...... 55 8.CONCLUSIONS...... 57 ANEXO...... 59 4 5 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

his document is the final report of the Study on the Brazilian and European Initiatives for the TDevelopment of the Micro- and Nano-satellite Industry. INTRODUCTION The Study has been developed part time during the months of June through November of 2014 according to the definedT erms of Reference (ToR) and presents an overview of the main initiatives, projects and efforts in the small satellite segment today both in Brazil and in Europe.

This final report has been created by the Project Senior External Expert and reviewed by the Ministry of Development, Industry and Foreign Trade (MDIC) of the Government of Brazil.

The author of this Final Report, and Project Senior External Expert, wants to express his most sincere gratitude to Mr. Alexandre Cabral, Mr. Edilson da Silva and Mr. Carlos Leonardo Teófilo Durans from MDIC for their unconditional support and friendship always.

6 7 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

1.1. CONTEXT The Sector Dialogues are a new form of cooperation STUDY PROJECT dynamics between the European Union (EU) and emerging countries. Currently, there are around 30 Dialogues identified between Brazil and the EU on a wide BACKGROUND range of themes, based on the principles of reciprocity and complementarity, aiming to foster the exchange of 1. know-how and experiences in areas of mutual interest. In this context, the EU-Brazil Sector Dialogues Support Facility was created with a view to contributing to the advancement and enhancement of the strategic partnership and bilateral relations between Brazil and the EU, by fostering greater exchanges of technical know- how. The project is coordinated jointly by the Brazilian Ministry of Planning, Budget and Management – through the National Project Directorate – and the Delegation of the European Union to Brazil (DELBRA).

See more at: http://sectordialogues.org/en/

Within this set-up, a Study Project on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry was proposed in early 2014 related to the existing dialogue between Brazil and the European Union in the field of “Civilian Space Cooperation”.

Contributing to this Cooperation Project, on the Brazilian side there are the Ministry of Development, Industry and Foreign Trade (MDIC) working alongside the (AEB), which has been an important player in the development of Brazil’s small satellite industry. On the European side there is the Directorate General for Enterprise and Industry (DG ENTR) of the European Commission.

The Study Project was to be developed by a Senior External Expert, coordinated and directed by the MDIC.

8 9 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

opinions, insights and visions from the persons who are • Visit to relevant conferences, including the Then the main national initiatives as well as private 1.2. GOALS AND EXPECTED leading this sector and paving its future, are harder to Small Satellite Conference in the United States companies and projects are presented in the next two OUTCOMES obtain. (not included in the scope in the original ToR of sections. This is done for Europe and Brazil. No detailed the Project). information on the different companies and projects is As mentioned in the original ToR, “there is a need for This report is NOT a Guidebook to small satellite design. presented. Instead hyperlinks to websites are provided, • Visit to selected European companies (Scotland, further study of the state of the art in the manufacture It may speak of technical points briefly when necessary when relevant. The idea is to keep this report executive UK, Italy) with representatives from Brazil in of micro- and nano-satellites, since this is still a nascent but it is not an engineering document. This is NOT a full and, as explained earlier, this approach should hopefully September 2014. industry in which Brazil and the European Union (EU) can market study either. make the report valid for a longer time as we speak of a position themselves to gain an important market share”. • Preliminary results presentation in Brazil in It is important to clarify also that the project scope was very dynamic industry. Porto Alegre, RS in October 2014. Ultimately the goal was to produce a map and collect on Brazilian and European initiatives and therefore these Next follows a first special chapter on other technical • Final meetings and workshop in Brazil in Brasilia insight of the current situation in Brazil and Europe in shall be the ones collected in this report. However, it is matters including launchers, laboratories and ground presenting report, outcomes and conclusions in order to: hard to separate other international efforts, especially the stations. ones in the US, as they are the leaders in many aspects. December 2014. a) Understand this segment of the space sector, When necessary non Brazilian-European initiatives will Next follows a second special chapter on non-technical For the interviews a semi-fixed questionnaire was used. with especial interest in explaining it to non- be commented on and will appear together with this matters including regulation, insurance and financing. The goal was to ask a series of core questions to all specialists that may play an important role in symbol: (*) future developments by spreading a common interviewees but also to allow freedom in order to collect Finally there is a chapter describing the works of a special language and common knowledge. Readers not knowledgeable of US initiatives are invited special concerns or remarks. Work Group created in Brazil as a complementary effort to to read about a few success stories that are moving this Study Project. This group is studying which business Throughout the development of the Project, permanent b) Explore potential collaboration lines between and shaping the segment of Small Satellites. Especially models may exist and exploring sector topologies for daily contact (via email, phone and/or Skype) took place both regions. suggested are companies GOOGLE’s SKYBOX and Small Satellites. between the Project Senior External Expert and the PLANET LABS. c) Link actors within each region for maximizing Executive Coordinator of the Project at the MDIC. Also, Conclusions and recommendations appear last. collaborations and partnerships. intermediate deliverables were produced for periodic 1.3. STUDY reporting and control. A separate Annex Document presents the compilation d) Serve as basis for developing future business of Interviews performed, which contain the mentioned models and studying sector topologies, gaps and METHODOLOGY “soft” opinions, insights and visions. This compilation opportunities. 1.4. FINAL REPORT also has facts and details on these companies as well. For the study, the Project Senior External Expert The interested reader is very much invited to deep dive In order to achieve a most useful result, the project was performed the following activities: STRUCTURE AND focused in face-to-meetings interviews (or video or into the compilation of Interviews. • Initial meetings in Brazil in Brasilia with relevant phone) with representatives of the main actors in this RATIONALE Due to the fact that the audience spectrum for this industry both in Brazil and in Europe. The idea was to players in June 2014. This report shall be short and executive in nature and report is potentially diverse in terms of backgrounds and collect, in this manner, the “soft” opinions, insights and • Internet and bibliographic research the content will be the summary of the main findings geographical origin, this report will include information visions rather than the “hard” factual data. The rationale • Visits and face-to-face interviews to Brazilian and conclusions from the research and interviews done that some readers may already know. For this reason, for this is that factual data can change very fast in this and European companies/players during the Project. readers are invited to discriminate what may or may not very dynamic nascent industry. Therefore it seems best be of their interest and read that which is pertinent to to let the reader revisit the Internet on his/her own for • Skype/phone interviews to remaining Brazilian This report contains first a description and classification their particular case. up-to-date information, which is done easily. However and European actors of the segment of small satellites together with a section on applications and market tendencies and future expectations. 10 11 StudyStudy on thethe Brazilian andand EEuropuropeanean Initiativenitiativess forfor tthehe Developmentevelopment ofof thethe MMicro-icro- andand Nano-satelliteatellite Indundustrytry

2.1. SMALL SATELLITE MICRO - CLASSIFICATION Let us start with a quick recall on Small Satellites AND NANO - classification. The “traditional” accepted academic classification for Small Satellites is based on weight and SATELLITES is as shown in the table below: 2. NAME / TYPE WEIGHT (kg) Femto 0.01 – 0,1 Pico 0.1 – 1 Nano 1-10 Micro 10-100 Mini 10-500

There is, additionally, a special Small Satellite type called Cubesat, which is standardized in terms of dimensions and weight. The Cubesat specification was originally developed by California Polytechnic State University (Calpoly) and Stanford University in 1999 and has been one of the key factor enabling the boom worldwide of nano satellite developments since it eases the design, integration and launch interfaces significantly allowing developers to focus on architectures and new entrants to explore in the field of space.

Cubesat standardization basis is as follows:

1U = 10cm x 10cm x 10cm e <1.33 kg

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Most Cubesats have been developed in a 1U configuration so far but tendency today is to see more 3U’s (30cm x 10cm x 10cm) and also 6U’s (30 cm x 20 cm x 10 cm) since these can hold larger and/or multiple payloads. Other bigger forms In the past one could think of Nanosatellites • Solar arrays such as 12U, etc. are also being considered for the same reasons. as Experimental and think of Microsatellites as Operational. However this is not the case any more as: • Batteries • Propulsion modules • On one side the larger Cubesat configurations • Multiple payloads (e.g. 12U) will pass the Nano-Micro weight line • Large aperture optical systems and still perhaps be Experimental in nature. • Complex thermal control systems • Advanced attitude control systems • On the other hand, we are starting to see commercial applications for satellites less than Limitations on the subsystems just listed will restrict 10 kg, i.e. Nanosatellites being Operational. the number of applications. However there are plenty of uses for Small Satellites. The list below is a typical In this report we will use both concepts (Nano, Micro) and collection of the main applications that the sector (Experimental, Operational) when categorizing initiatives agrees can be performed by Small Satellites.1. of Small Satellites. • Telecommunications Furthermore as technology advances it is likely that we √ Communication for remote areas will speak more of Pico and Femto satellites for both √ Natural disasters Experimental and Operational applications. • Earth Observation / Remote Sensing After discussions with many actors both in Brazil and in Europe, it was concluded that a different additional classification √ Real-time monitoring makes sense in order to explain the small satellite segment. This refers to the type of application / nature of the satellite. √ Weather prediction In this way we can find: 2.2. APPLICATIONS & • Technology demonstration of new technologies and EXPERIMENTAL satellites: MARKET applications • Cubesat modular type (1U, 3U, 6U, etc.) In recent years we have not only seen the birth of the Small Satellite segment but also actually its consolidation. • Scientific Research • Fast project development schedules Now we are at the beginning of a new era where we will • Training / Education (Civil) see not only Experimental projects, but also more and • Low cost more Operational ones. This is due mainly to the: • Military (Defence) • “Low” reliability √ Communications • Miniaturization of technologies of subsystems √ Monitoring • Education and technology demonstration and payloads • Lower cost thanks to standardization Let us look now at the market perspectives. Interviewees OPERATIONAL satellites: • Potential for new applications were asked on their opinion on future market potential • Technology miniaturization • Faster project development times for Small Satellites and there was a consensus in Europe • New operation modes such as constellations and Brazil on the rapid growth of this industry and on • Regular project development schedules the very big potential for future applications. However, The weight and size of Small Satellites restrict them today most interviewees did not have, or refused to provide, • “High” cost from being able to perform many of the applications that detailed information and numbers related to their market other larger satellites can. Small size means that there • High reliability predictions. (For more information please refer to detailed may not be sufficient space for: answers compiled in the Annex Document). • Advanced technology applications • Large antennae 1. As provided kindly by the AEB (Brazilian Space Agency) 14 15 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

(*) There are several companies that produce market reports for the sector apart of the market studies performed by The split in sectors is also interesting with an expected increase in Commercial applications to account for more than space companies themselves. These reports are costly and no budget was allocated in this Project to acquire any of them. 50% of future Micro and Nano satellites in the next years. According to SpaceWorks the Civil (Government, Academia) However, the most accepted market report worldwide for the recent size and future potential for the market is FREE so let sector demand will see an increase by almost threefold but proportionally this will mean a significant reduction due to the us see what it says. It is prepared by SpaceWorks from Atlanta, Georgia in the US.2 mentioned Commercial increase.

SpaceWorks prepares this report roughly once per year with the 3rd edition released in 2014. Let us review some of their most interesting figures from the latest report: SpaceWorks’ 2014 Projection reflects a significant increase in the quantity of future nano/microsatellites needing a launch (see graphic below). This is driven by the emergence and continued growth of commercial players in the 1-50 kg satellite market.

As we spoke at the beginning of this section, despite the limitations that they present, Small Satellites can serve a wide variety of purposes. SpaceWorks and the opinion of actors interviewed coincide in that Earth Observation/Remote Sensing will be the primary application in the near future with Technology Demonstration and Scientific Research still high.

2. 2014 Nano / Microsatellite Market Assessment, SpaceWorks Enterprises Inc., Altlanta, GA 16 17 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

The main conclusions from SpaceWorks are generally shared by most actors in the sector that were interviewed:

• The nano/microsatellite market is growing tremendously with the continued use of the Cubesat standard, microelectronics and other technology development, government programs, and furthering of applications.

• The civil sector remains strong, but the eruption of commercial companies and start-up activities will continue to influence the nano/microsatellite market; future launches suggest this trend will continue.

• Projections based on both announced and anticipated plans of developers indicate 2,000 – 2,750 nano/ microsatellites will require a launch from 2014 through 2020.

• Nano/Microsatellite CAGR (Compound Annual Growth Rate):

√ Historical average growth of 37.2% per year over the last 4 years (2009 – 2013)

√ SpaceWorks’ Projection Dataset shows average growth of 23.8% per year over the next 6 years (2014 – 2020)

While 1U (1 kg) Cubesats are still widely used, 25% of future nanosatellites (1-10 kg) are in the increasingly popular 6 kg mass class.

Applications for nano/microsatellites are diversifying, with increased use in the future for Earth observation and remote sensing missions

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here are at present many programmes, platforms, companies, projects, initiatives, and different Tmodels in Europe as related to Small Satellites. EUROPEAN SMALL Let us present a few of the most relevant ones below including insights from the interviews performed. The non-European reader will hopefully find this chapter SAT INITIATIVES insightful. 3. 3.1. NATIONAL & SUPRANATIONAL LEVEL

The European Commission, through its office of DG ENTR is the primary funding source for this study, as explained at the beginning. For the non-expert in European affairs it is important to learn that the European Commission did not directly finance space developments in the past but now is: the GALILEO navigation and positioning constellation and the COPERNICUS Earth observation system. The (ESA) technically manages both projects for the European Commission.

As related to Small Satellites the Commission can fund research projects which aim are to advance the Technology Readiness Level (TRL) through its Horizon 2020 3 Research Programme (past Framework Programmes (FP7, FP6)).

During the interview with the Officers in charge of the space sector at the Commission it was made clear that no specific program is foreseen specifically targeted at Small Satellites. Rather the Horizon 2020 mechanism is suggested.

3. http://ec.europa.eu/programmes/horizon2020/ 20 21 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

(BICs). These BICs fall within the Technology Transfer As an example of National public initiatives in Small CNES has not so far launched efforts in developing an Programme Office (TTPO) with the goal of to inspiring Satellites let us see what the 2 largest national space equivalent Nanosatellite platform and is rather observing entrepreneurs to turn space-connected business ideas agencies – French and German – are doing: this segment from a near distance by supporting the into commercial companies, and provide technical JANUS programme for the development of student The French (Centre Nationale d’Etudes expertise and business-development support. CNES Nanosatellite projects in several universities in France. ESA has been a latecomer to the Small Satellite arena Spatiales) developed at the end of the 90´s a “low cost” contrary to its leadership in other segments of the ESA has created several BICs across European Microsatellite platform called Myriade (100 kg), which The German Aerospace Centre DLR (Deutsches Zentrum countries to support selected entrepreneurs with has been used in over 12 different Earth observation für Luft- und Raumfahrt) is, in contrast, developing a space sector. It did “resist” entering but now has a comprehensive commercial and technical assistance missions in recent years. Also, important to note: CNES Nanosatellite platform called CLAVIS. The project CLAVIS high technology 3U Cubesat under development: the in order to help them start up businesses that apply OPSSAT, which is designed to be an orbiting test-bed for space technology to non-space industrial, scientific and developed an agreement in past years to let the two main aims at the design and manufacturing of Nanosatellites, innovation. As described by ESA: “OPS-SAT is devoted commercial fields. ESA BICs provide support to more large satellite integrators - AIRBUS Defence & Space which allow for a low cost operation of payloads and to demonstrating drastically improved mission control than 75 companies every year in Europe, and more (DS) (former ASTRIUM) and Thales Alenia Space (TAS) technology demonstration tests within very short capabilities that will arise when satellites can fly more than 200 start-ups companies have received support – commercialize satellite solutions using the Myriade response times. Its design shall allow for launch options to date. powerful on-board computers. It consists of a satellite platform. We will mention this later again when talking with many potential launch vehicles, as well as for the that is only 30cm high but that contains an experimental about the main initiatives by the large European satellite operation in a huge bandwidth of earthy orbits. computer that is ten times more powerful than any integrators. current ESA spacecraft.” The Myriade was a European precursor to “low” cost standardized satellite design, in a way similar to what the Cubesat specification has done. However Myriade was conceived as a platform for advanced Earth observation tasks and not as a research or education tool, as was the Cubesat at its origin.

Also interesting to point out is the fact that the CNES has decided to make a Myriade Evolution (150-200 kg) with a larger and stronger structure for larger and multiple payload capacities. This means that effectively Myriade Evolution will no longer fall under the Microsatellite Another curious example of a European National Small classification in terms of weight. Satellite program is the UKube-1 for the United Kingdom. The project is interesting because it is actually a PPP As related to this Project, CNES expressed their interest (Private Public Partnership) as it has been jointly funded to collaborate with the Brazilian Space Agency to create by Clyde Space (one of the main European new Small a joint CNES-AEB Myriade satellite for Brazilian use. Satellite companies – as we will see in Chapter 3) and the UK Space Agency, and is also the first mission to be commissioned by the UK Space Agency since it was formed in 2010. Even if not exclusively related to Small Satellites, it is worth mentioning an interesting initiative created by ESA in recent times: ESA Business Incubation Centres 22 23 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

that Brazil has in this Micro and Nano satellite segment the Small Satellite segment. (Below a little image to make a strong mental print into the reader’s brain of which are the with the VLM . See more on the VLM in main companies that lead this “new space sector”): Chapter 6. Thales Alenia Space Also able, by agreement, to commercialize solutions based on the Myriade platform from CNES, TAS has decided to develop their own advanced technology UKube-1 is essentially a technology demonstration modular Microsatellite solution called NIMBUS. The aim mission and most of the payloads on UKube-1 are already of the NIMBUS platform is to be able to reduce 1 order of being used on other Cubesat missions throughout the magnitude the weight (of course also cost and complexity) World. of existing advanced technology Minisatellites, say from 500kg to 50kg, from 800kg to 80kg. They believe there “The lessons learned from this project have had an is a “sweet spot” and opportunity for this thanks to the impact on many of the things we do with benefits that miniaturization of components and technologies. will be passed on to our customers.” as Clyde Space states. Related to Europe-Brazil relations in the space sector it is important to comment on the present contract between Brazilian company Visiona (see Chapter 4) and TAS for the 3.2. COMPANIES development of the large geostationary communications satellite SGDC (Satélite Geoestacionário de Defesa e First let us take a look at the main large European All companies shown in above were interviewed during the course of the Project and detailed insight as well as company Comunicações). satellite integrators (companies below where interviewed information can be found in the Annex Document. and transcripts can be found in the Annex Document): OHB System + LUXSPACE However let us make a few summarized points on these companies: AIRBUS DS + SSTL (Surrey Satellite Similarly to Airbus DS, German OHB System is not Technologies Limited) • Most of them were born as Spin-Off of university projects (i.e. ISIS, GAUSS, GOMSPACE, Nova Nano). See carrying out any developments in Nanosatellites nor in Chapter 6 for more insight on financing. As commented before, Airbus DS can commercialize Microsatellites in their case. However, also similarly to Microsatellite solutions based on the Myriade platform Airbus DS and SSTL, OHB System has a fully owned • We are seeing, so far one or two companies per country, with some of the most relevant companies from from CNES. Airbus DS is attentive to the evolution subsidiary – Luxspace –that focuses on advanced countries or regions not traditionally strong in the space sector (e.g. GOMSpace, Clyde Space). of Nanosatellites but has not so far done efforts technology Microsatellite projects. Luxspace, as it • Companies are small in size, which can vary from 5 persons (Nova Nano) to almost 50 (ISIS). in this direction. In complement to Myriade-based names reveals, is based out of Luxembourg and acts solutions, SSTL, a subsidiary of Airbus DS in Surrey, fully independent providing know-how, expertise as • Only one of the Nanosatellite technology providers is ISO accredited so far (Clyde Space). Let us remember that UK is a world leader in the development of advanced well as products and services to the European and the Nanosatellite business is very new and that customers do not have the same reliability requirements than technology Microsatellite projects and has created some global institutional and industrial market in the fields of traditional clients. Nanosatellites developments also. space and defence system engineering and application development. • Most of these companies do not have large Assembly, Integration and Testing (AIT) capacities and have relied An interesting extract from the interview to Airbus DS significantly on existing capacities in external institutes and National laboratories. See more on this in Chapter 5. related to Brazil is their belief in the strong opportunity Let us now look at the main new European companies in

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• The companies provide products and components, as well as deployment solutions for Small Satellites. It is not until recently that these companies have had their own first satellite designed, built and launched. GAUSS is an exemption as they have launched Microsatellites for many years now.

• Communication channels and relationships with customers are more informal than traditional , many companies providing an on-line catalogue of products with price lists for ease but also for marketing cost reasons. A special project - the QB50 Cubesat project - is of special significance as it entails several topics we have discussed: European Commission financing, Experimental Nanosatellites, Cubesats, Technology • Finding human resources with sufficient engineering knowledge has not been so far an issue to the development Demonstration, Scientific Research, Training/Education, New operation modes / constellations, etc. of nascent Small Satellite companies. 3.3. PROJECTS Plenty of Small Satellite projects from European companies; institutes and universities have been launched in these past IN-ORBIT FACILITATING ACCESS years: DEMONSTRATION TO SPACE Operational Microsatellites have been launched, in general by the main 3 large satellite integrators: Airbus DS-SSTL, Thales Alenia and OHB-Luxspace and by a couple other space companies (such as Deimos) and national centres and some universities.

Interesting examples of Experimental Microsatellites in Europe include for example UPMSat-1 and -2 from the Polytechnic University of Madrid. Of course the UniSat series by University of Rome / GAUSS is probably the best case study. We have seen earlier that GAUSS is one of the main new space small satellite actors in Europe. As defined byGAU SS: the UniSats are a series of small microsatellites (<10 kg) developed to perform technology experiments and to check use of non-space rated equipment in space. First one was flown in the year 2000.R eader is invited, again, to see interviews performed to these groups.

The most interesting growth in any case is that of Experimental Nanosatellites – Cubesat type. Thanks to the standardization EDUCATION SCIENTIFIC of this format many new entrants have been able to have their first space system in orbit. RESEARCH

It is no coincidence that 2 of the main small satellite companies we have seen earlier (GOMSpace and ISIS) were created by team members of the first 2 European Cubesat projects back in 2003: AAUSar and DTUSat from University of Aalborg in Denmark and Delft University of Technology respectively. Since then these universities have continued with other Cubesat projects. QB50 is a European Commission FP7 funded Project aiming to provide an international network of Nanosatellites for The beginning of the “boom” in Europe (as in the rest of the world) for Experimental Cubesats, mostly by Universities, collaborative scientific research. For the QB50 atmospheric research network, 50 2U Cubesats are foreseen with 1U has been a little more recent in the past 4-5 years since 2009. By today most European countries have launched one or providing basic functions and the other 1U accommodating a set of sensors for lower thermosphere and re-entry research. more Cubesats and are presently developing more. This is the case for Germany, Spain, France, Italy, Switzerland, Norway, The QB50 mission will demonstrate the possibility of launching a network of Cubesats built by university teams all over Denmark, the Netherlands, the UK, Belgium, Poland, Austria, Romania, etc. the world as a primary payload on a low-cost launch vehicle to perform first-class science.

The reader is invited to visit a reasonably good list of Cubesat projects that is periodically updated at: http://en.wikipedia. (Please see interview with QB50 Project Manager for more insight on QB50 and on his opinions of the sector as a whole). org/wiki/List_of_CubeSats. 26 27 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

ompared to Europe, a lesser number of Small Satellite initiatives exist in Brazil. Actually, not Cmuch space industry exists in Brazil in general. We will use this chapter to provide not only an overview BRAZILIAN SMALL of the Small Satellite segment in Brazil but also to revisit a little on the Brazilian space sector (especially SAT INITIATIVES interesting to the non-Brazilian reader). 4. 4.1. NATIONAL LEVEL The two main national programs that collect the strategy and major action lines for the space sector in Brazil are the PNAE and the PESE: AEB & The PNAE

The AEB (Agencia Espacial Brasileira) – Brazilian Space Agency – is responsible for the elaboration of the PNAE4 (Programa Nacional de Atividades Espaciais) – National Program for Space Activities. The latest version, from 2012 is valid for the period 2012-2021 and presents an overview of the strategic action lines that Brazil intends to implement in the coming decade related to space.

The latest revision of the PNAE considers a section on Small Satellites for the first time and views them as Complementary Projects that can improve the sustainability of the Brazilian Space program as can be seen below:

4. Programa Nacional Atividades Espaciais 2012-2021. Ministério de Ciên- cia, Tecnologia e Inovação. Governo do Brasil. 28 29 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Complementary Projects OUTCOMES/IMPACTS SÃO JOSÉ DOS CAMPOS (SJC): Critical Technologies Program • Increased capacity for coordination between This is the traditional aerospace city in Brazil (similar to Toulouse in France) with the main aircraft constructor Embraer, government, academia and industry, helping to expand Low-cost technological projects for small satellites the main aerospace school ITA (Instituto Tecnológico de Aeronáutica) – Aeronautics Technical Institute, and also the main the country’s technological autonomy, as well as space centre INPE (Instituto Nacional de Pesquisas Espaciais) – National Space Research Institute). The INPE will also be Low cost alternative technologies project for access do opportunities for innovation in various sectors of the covered later on in Chapter 5 in the section on Laboratories plus personnel from INPE were interviewed also and INPE space space area. • Development of human skills in the space sector. was also part of a special Work Group that will be explained in Chapter 7. • Consolidation and expansion of aerospace engineering São José dos Campos has a few good companies with background and experience in space, as suppliers to INPE’s courses in Brazil. programs. Here we can mention for example Equatorial Sistemas, Orbital Engenharia or Opto. AEB directly coordinated and/or supports several Experimental Nanosatellites such as SERPENS or ITASAT that we will Apart of INPE, a test house but also a mission and system integrator, a special mention must be made about Visiona. see in the next pages. Visiona is a new (3 years old) company created by Brazilian groups Embraer (51%) and Telebras (49%) with an initial CCISE & The PESE mission of being an integrator for Brazilian new geostationary satellites SGDC-1 and SGDC-2 in technical partnership with European Thales Alenia Space. Visiona has rapidly grown in these past 2 years and has the goal of becoming a champion The CCISE (Comissão de Coordenação e Implantação de Sistemas Espaciais) – Commission for the Coordination and in the space sector with products and services not only for telecommunications but also for Earth observation, most likely Implementation of Space Systems – part of the Brazilian Air Force (FAB), is responsible for the elaboration of the PESE5 with a future Microsatellite platform developed in Brazil. Personnel from Visiona were interviewed also and Visiona was (Programa Estratégico de Sistemas Espaciais) Nacional de Atividades Espaciais) – National Program for Space Activities. also part of a special Work Group that will be explained in Chapter 7 The goal of the PESE is to provide space infrastructure to be used in a strategic manner and in support mainly of the RIO GRANDE DO SUL (RS): following systems: Although not a traditional player in the space sector, the State of Rio Grande do Sul has developed in the past 2 years a • SISGAAZ (Sistema de Gerenciamento da Amazônia Azul) very interesting initiative related to Small Satellites, with special focus on Experimental and Operational Nanosatellites. System for the Management of the Blue Amazon region The Space Pole of Rio Grande do Sul is a cluster formed by industry, academia and technology institutes as shown in the graph below. • SISFRON (Sistema Integrado de Monitoramento de Fronteiras)

System for Border Monitoring

• SISDABRA (Sistema de Defesa Aeroespacial Brasileiro)

System for the Aerospace Defence of Brazil

• SIPAM (Sistema de Proteção da Amazônia)

System for the Protection of the Amazon region 4.2 COMPANIES Since the space sector is much smaller in Brazil than in Europe and the Small Satellite segment is still rather young, let us a general review of the sector in different geographical areas (States) in Brazil instead of a presentation of companies analogous to the one done for Europe.

5. PESE. Ministério de Defesa. Governo do Brasil. 30 31 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

As related to this Study Project the Space Cluster of with an indication of the main leaders of the projects as de Aguas) – the Brazilian National Agency for Waters. Rio Grande do Sul was very helpful and proactive at all well as a hyperlink to their official pages. In this way the It is already included in the PNAE and will consist times6. Most actors in the cluster were interviewed (see reader can get live up-to-date information, especially of a constellation of 4 Microsatellites for the Earth Annex Document) and special visits and an intermediate since these projects are all in a very dynamic phase: in Observation and study of Brazilian main watersheds. results presentation were done in that State. operation or near to be launched. Equatorial Sistemas was responsible for the first studies on the options for ANA and Visiona is now leading the (INPE Santa Maria) MARANHÃO • NanosatCBr-1 procurement phase, with requirement on a foreign (http://www.inpe.br/crs/nanosat/NanoSatCBR1. Also, there is the fantastic State of Maranhão the satellite platform with “heritage”. php) launch base of the beautiful city of Alcântara. This is of • CARPONIS is a Microsatellite platform led by AEB special relevance to Small Satellites because, as will be (INPE São José dos Campos, ITA) • AESP14 that may become in the future the national platform of covered later in Chapter 5, Brazil counts at present with (http://www.aer.ita.br/~aesp14/) preference for Operational Microsatellites. interesting initiatives with respect to reaching full orbital launch capacity. • SERPENS-1 (AEB) (http://pt.wikipedia.org/wiki/SERPENS) Maranhão could therefore also develop in the future an industry as associated to supporting the launch activities • ITASAT (ITA, AEB, INPE) mentioned. (http://www.itasat.ita.br) • UBATUBASAT (Escola Pública Ubatuba) 4.2. PROJECTS (http://www.ubatubasat.com) The most remarkable recent-past, present and near Operational Nano and future Small Satellite projects in Brazil are presented Microsatellites: next: There are also a couple of very interesting Operational Experimental Nanosatellites: Small Satellites projects in Brazil from recent past or for near future worth mentioning: Several student Cubesat projects are at present in development with the first one launched past June of • The Multi Mission Military Microsatellite MMM-1 2014 (NanosatCBr-1) and a few others to be launched was a 3U Operational Nanosatellite developed by the before the end of 2014 and in 2015. These projects are Space Pole of Rio Grande do Sul under leadership of collaborative efforts between institutions, technology the AEL Company. The FAB is has in recent past and centres and academia and are allowing Brazil to train is still considering strongly the use of constellations of students in the space sector as well as to test innovative Operational Nanosatellites to support in some of the technologies. tasks related to the systems listed above. The MMM-1 project was directly related to PESE but unfortunately The main ones are listed below. Only a list is provided is, at present, in a stand-by situation due to a lack of financing. 6. The author of this Final Report is especially thankful to Mr. Christiano Ambros, representative of the development agency of Rio Grande do Sul • The SCD-HIDRO is a project for ANA (Agencia Nacional (AGDI) for his superb contribution to the Project. 32 33 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

5.1. LAUNCHERS We can divide the type of launches of Small Satellites into OTHER TOPICS – “conventional“ launches and “dedicated” launches. Also there is a third type that has been used in recent years extensively for the launch of Cubesats, which consists in TECHNICAL the launch from the International Space Station (ISS). Let us explore these 3 types of launches: 5. PIGGY-BACK LAUNCHES The first, also called as “piggy-back rides” transport the Small Satellites to orbit as secondary or tertiary loads in larger launch vehicles, which are bringing larger satellites (telecommunications, Earth Observation, etc.) into specific orbits.T he pros of this type of launch for small satellites are lower costs as the primary satellite is covering the main cost. The main drawback is that mission-specific orbits cannot be selected and therefore the small satellite will have to live with operating at the orbital parameters (altitude, inclination, ascending node, etc.) that has been provided.

In theory any large or medium launcher can be used for this type of launch. (*) Countries such as the US, , Ukraine, China, India and Japan can theoretically provide this type of “piggy-back” launches from systems such as Atlas, Delta, Falcon, Antares, Ariane, Soyuz, DNEPR, Long March, etc. As an example, a DNEPR mission that took place this past June beat the world record of satellites in one single launch with over 30 vehicles inserted into orbit. DNEPR is a modified version of a cold-war soviet Inter Continental Ballistic Missile (ICBM).

Let us analyse a few European and Brazilian companies and programs:

34 35 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

EUROPE can potentially provide this type of launch BRAZIL does not have a commercial launch system in Let us analyse some of the most relevant Brazilian and European initiatives of “dedicated” small satellite launchers: services with any of its existing commercial launch operation at the time of the writing of this report. systems such as or Eurockot vehicles. EUROPE is seeing a few companies at present. Two interesting examples are: Alcântara Cyclone Space (http://www. Swiss Space Systems (S3) (http://www.s-3.ch) is an air-launched system that will target nano, micro and up to mini Arianespace (http://www.arianespace.com) provides alcantaracyclonespace.com/en/) is a new consortium satellites for Low Earth Orbits. The company, with headquarters in Switzerland, is built around a group of some of the vehicles (Vega, ArianeV, Soyuz), which are specially between Ukrainian and Brazilian governments to launch strongest European actors in the space sector. S3 already has subsidiaries in Europe, North America and Asia. The designed and able to launch a wide range of satellites the Ukrainian Cyclone IV rocket from the launch base in company’s headcount is expected to reach in 2015 100 persons. into many a type of orbits from the French Guyana the beautiful city of Alcântara in the fantastic State of (typically Equatorial or low inclination orbits). Maranhão. The Cyclone IV could potentially offer in the future “piggy-back” launches. Eurockot (http://www.eurockot.com) is a European- Russian joint company between Airbus DS and Krunishev The VLS (Veículo Lançador de Satélites), part of the and commercializes Low Earth Orbit launches using a Brazilian Space program, could be another option vehicle derived from Inter Continental Ballistic Missile providing future “piggy-back” launches for small (specially polar orbits and sun synchronous) satellites. However this program has not advanced sufficiently yet nor been focused commercially so far.A terrible accident happened over a decade ago that put the VLS program in stand-by and has since advanced with slow progress. DEDICATED LAUNCHES The second type of launch, or “dedicated” launches occupies at present a very important place today in the discussions related to small satellites. Contrary to the “piggy-back” launch, a “dedicated” launch should be able to place the micro or nano satellite on the desired date at a mission-specific orbit.T his will imply higher cost but customer/mission requirements may be such to call for a specific launch date or orbit. In a way a dedicated Celestia Aerospace (http://celestiaaerospace.com) is an air-launched system that will use a Russian MiG fighter aircraft small satellite launch is analogous than what a larger and modified missiles for the launch of nano Cubesats. The company, with headquarters in Spain, is at present finishing satellite uses, except for very small mass satellites. its first final round of investments with pre-agreements with many customers.T he company has a headcount of 10 persons with an expected growth to 40 in 2015 and to over 300 when the project is fully functioning. Several such systems are in development worldwide. Some companies are opting for vertical launch solutions whether several have decided to go for aero- launch systems where a “first stage” is provided by an aircraft from which a rocket is launched. (*) Americans Generation Orbit or Virgin Galactic’s Launcherone are good non-Brazilian non-European examples of such systems under development. 36 37 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

EUROPE-BRAZIL has, at present, one of the solutions Swedish Space Corporation plans to build two launch with highest POTENTIAL (technically and economically) centers for Brazilian rocket VLM in Maranhão state in the world – the VLM: and in the Esrange Space Center in Sweden. The first step toward this goal will be signing in December an The VLM (Veículo Lançador de Microsatélites), part agreement between SSC and the Aerospace Science of the Brazilian Space program could become one and Technology Department (DCTA) of the Brazilian of the first commercial systems to provide dedicated government, which coordinates the rocket’s launch. launches, especially since the very recent agreement According to the DCTA, the agreement includes for collaboration with European company SSC (Swedish the exchange of information on human resources, Space Corporation) (http://www.sscspace.com). development and operational procedures of space launching, as well as propulsion technology and environmentally friendly fuels. SSC, in turn, wants to use the Brazilian-made VLM to launch micro and nanosatelites for the European market7 (*) ISS LAUNCHES

A special type of launch system or orbit injection system is operating from the International Space Station (ISS) and consists on the launch out of a fixed deployment system designed specially for Cubesats (1U, 3U, 6U, etc.). There are 2 such systems: Let us close this section coming back to our classification of small satellites presented inC hapter 2. “Dedicated” launches • the Japanese Small Satellite Orbital Deployer (J-SSOD) should become slowly more predominant for Operational small satellites whereas “piggy-back” rides and “ISS-launched” will typically remain the preferred launch solution for Experimental small satellites (except for special cases such as Planet • the American NanoRacks Cubesat Deployer (NRCSD) Labs which is offering commercial Earth Observation services from satellites deployed from ISS primarily). The launch from ISS has some benefits such as the reduction in the vibration levels and loads seen coming from a regular launch vehicle and also the reduction of 5.2. LABORATORIES the probability of damage during launch. On the other The needs for new Laboratories as related to Small Satellites can also mean opportunities for business. Let us quickly hand the orbits that satellites are inserted into are of low review the situation on both sides of the Atlantic. altitude (400 km) and therefore this means that useful orbital life before atmospheric burn will be reduced to In Europe, with a more consolidate space sector, there exist plenty of laboratories both at National public level, independent just a few months. private laboratories and then the laboratories of companies themselves. Typically small companies have most clean rooms for integration and basic functional testing where as large satellite integrators (e.g. Airbus DS, TAS, etc.) have full capacity for AIT (Assembly, Integration and Testing) and both functional testing as well as environmental – as related to the 7. http://www.valor.com.br/international/news/3766434/ssc-plans-build launch (vibration shakers, acoustic chambers) and for the space environment (thermal vacuum environment, EMC, etc). -space-launch-center-brazil In Brazil the INPE of São José dos Campos has a world-class leader AIT facility – the LIT (Laboratório de Integração e

38 39 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Testes). The LIT can perform component as well as full satellite integration and a wide variety of tests including 5.2. GROUND STATIONS thermal vacuum, acoustics, vibrations and EMC. At The needs / opportunities for new Ground Stations present, the LIT has actually been the main AIT location are related to Small Satellites must also be taken into for the Cubesat projects SERPENS and AESP-14 and account although no specific line of research was done offers its capacities and know-how for future such in this Study Project. developments. Let us comment, for the non-expert, that there are 2 Also interesting is the CIENTEC foundation, part of the types of ground stations: mentioned space cluster of Rio Grande do Sul has many capacities that are needed and can be used for space • Tracking or control and has a pre-approved investment plan to further • Communications or data develop capacity, with especial focus on Small Satellites. And also there are 2 types of potential business The question now is whether developing new capacity opportunities: as related to Small Satellites makes sense or whether the existing facilities should be used. All companies and • Design and construction of ground stations other actors interviewed during the Project were asked • Operations and services from ground stations on this and there seems to be a general consensus as such: If we speak of Operational Small Satellites then the need for Ground Stations capacity will largely depend on the • Small Satellite developers should try, as much type of applications and the frequency allocation and as possible, to have some level of integration transmission mode selected. For military applications it is and basic functional testing with at least a clean likely that the FAB will be responsible for these whereas room facility. For Experimental satellites this is for civil commercial applications Telebras could provide not that costly and allows for much freedom in the necessary antennae and facilities on the ground. This the development phase. should be studied case by case. • For finalAIT and especially for environmental Another possibility for Brazil is to engage in further testing, a shared facility with the testing partnerships with foreign companies in this business capacities mentioned above (such as INPE’s LIT such as Swedish SSC and their worldwide network or CIENTEC) is probably the best business case Prioranet. for the future development of the Small Satellite industry. These testing equipment are expensive For Experimental Small Satellites, especially Cubesat type to acquire and to operate and it is not likely that for educational purposes, then any amateur antenna and a Small Satellite integrator will be able to justify a radio equipment is sufficient for communication, as is business case for investing in them been done at present with the projects presented before. Therefore no real business case is foreseen for this type.

40 41 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

6.1. REGULATION (*) Regulation for Small Satellites will be, same as for any OTHER TOPICS – other larger space vehicle, ruled by United Nations Treaties as well as international regulations and national NON TECHNICAL laws. Next we will present a brief summary of how this works, which will be especially interesting for those readers that are new to this sector. A special thanks here to the International Space University (ISU) (http:// 6. www.isu.edu), which was interviewed during the Project, for providing the following comprehensive summary of space regulation8.

(*) (Note this section is generic and not focused on Brazil and/or Europe).

In general terms a satellite must be registered in one state (country), which is ultimately liable for any damage on the ground, air or space. The following International and national regulations must be taken into account for any Small Satellite project:

International:

•

•

• General Assembly Resolution 1721 B (XVI)

• General Assembly Resolution 62/101

• General Assembly Resolution 59/115

• Liability Convention

• ITU Convention, Constitution & Regulation

National (will depend on each state):

8. Guidebook on Small Satellite Programs. International Space University. 2011 42 43 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

• National Space Law How is this related to Small Satellites? Several US interesting for those readers that are new to this sector. companies asked during the development of the Project A special thanks here to the Spanish subsidiary of Marsh • National believe that had ITAR (and other) restrictions not been in insurance company (http://www.marsh.com), which was Issues that must be resolved can be summarized in: licencing, frequency allocation, registration and insurance (we will place, the main new European Small Satellite companies interviewed during the Project, for providing the following cover Insurance briefly in a separate section later on in this chapter). would not exist today. comprehensive summary of space insurance9.

To explain all of the above, let us follow ISU’s project map for Legal Issues, divided into: Pre-launch, Launch & In-Orbit. 2014 is a key year for ITAR restrictions since earlier this (*) (Note this section is generic and not focused on Brazil This is presented in the table below: year in May the State Department of the United States and/or Europe). approved the rule to move the commercial satellites The first concepts of space insurance date to 1965 for and related items off the Munitions List and back to the Pre-Launch Launch In-Orbit the Intelsat I spacecraft. Most of the contracts signed Commerce Control List. This new legal status was to be between then and the end of the 20th Century were - Outer Space Treaty - Outer Space Treaty in place in November 2014. There are many aspects of - Outer Space Treaty associated to commercial communication satellites - Registration Convention - Liability Convention International Framework the new regulation that remain unclear but this is a big - Liability Convention launched to geostationary orbit. However, since early - ITU Constitution & Regulations - International Guidelines step no doubt. 2000 insurers started to regularly provide over for Earth Even if far from a final and clear solution, the fact is that Observation / Remote Sensing satellites. the United States is “back in business” for exporting Domestic Space Domestic Space Legislation Domestic Space Legislation National Framework space technology and this is something Europe and Brazil Legislation must take into consideration in the future development of their Small Satellite industries. 6.2. INSURANCE (*) Insurance is the third largest cost in a satellite project - Frequency Allocation* - Liability Issues after the satellite development itself and the launch. - Liability Issues - Registry of Space Objects* - ** However, as we said at the beginning of this report, most Nanosatellites have been Experimental up to date and therefore have not been insured, as it would *ISU makes a good remark in pointing out that frequency allocation and coordination as well as registration of the satellite increase significantly the cost of the project. However are time-consuming processes that should be considered at the early stages of the program. the move towards more Operational Nanosatellites with **Also, plan must be made regarding the end of Small Satellite missions in order to avoid the creation of space debris. commercial applications and also the potential spread of constellations of large number of satellites may make Let’s change topic and briefly discuss theU S ITAR - International Traffic inA rms Regulations - as it affects the whole space the business case of insuring Nanosatellites worthwhile sector. In 1999 the United States moved satellites and related items from the Commerce Control List to the Munitions List, in the future. In the case of Microsatellites, where cost is placing them under the jurisdiction of the more restrictive ITAR. This has made it more difficult for US companies to export higher, the satellite manufacturer may decide to insure space systems and, in turn, has opened the door to non-US developments (especially in Europe). it as well.

This is the case also for the US limitations of the sale of commercial satellite imagery, currently limited to resolutions no Next we will present a brief summary of how this works 9. Introduction to Space Insurance. Marsh S.A. Spain. 30 June 2014 sharper than 50 centimetres. US industry has been lobbying strongly to reduce this, at least, to 25 centimetres. today for larger satellites, which will be especially 44 45 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Analogously to the legal issues we have seen in the previous section, we can classify the types of space insurance as The specific issues forL aunch and In-Orbit insurance follows: are: 6.3. FINANCING We have saved the best for last. What is the best way • Policy period versus policy coverage to get a Small Satellite project financed? Unfortunately •Amount of insurance there is no single “silver bullet” solution to the problem of financing (as with any other sector). Other •Premium and premium payment “One challenge that may hamper the expected double •Margins and redundancy digit growth of this market is raising capital by startups •Premium rating and small sized companies as every machine, every orbiting device, cost thousands of dollars; every major •Loss definitions technology investment has been a bet-the-company Liability Pre-Launch adventure. Thus finding the right area along with •Name insured’s duties economically feasible and profitable area holds the key Space Liability Insurance to success in this field. Inability to obtain financing could possibly delay or cancel satellite programs. We saw in the previous section on regulations how Liability is a big topic that must be covered. UN Treaties According to survey reports about 60 percent of U.S. as well as National laws rule these. Indeed the risks commercial satellites have been financed by U.S. based of launching satellites and involve a degree of Ex-Im Bank and are planning to enhance its support for third party liability risk. These risks can be characterised U.S. industry in anticipation of its aggressive competition, In-orbit Launch as follows: in funds provided for satellite exports worldwide, from its • Pre-launch operations risks, mainly concerned European counterpart, Coface. However, uncertainty in with property damage and injury arising out of a global financial markets creates mixed results for funding prelaunch accident. in satellite services sector business. Debt markets are still strong while traditional investors remain risk averse • Launch operations risks, mainly concerned in perspective to markets for satellite financing.”10 Pre-Launch Insurance with the ballistic risks of the launcher and satellite during initial flight until insertion into Satellite pre-launch insurance is separated from launch and in-orbit insurance. Many companies, in fact, are not insured orbit. Let us take a look at financing of Small separately but insured under their general property policies that cover the entire operations of the company, therefore Satellite companies in Europe: covering prelaunch activities as well. • Specific in-orbit operations risks arise for low earth orbiting spacecraft and stages, out of the The main European Nanosatellite companies presented Launch and In-Orbit insurance risks associated with re-entry. For all spacecraft, earlier in Chapter 4 started their adventure as Spin- and stages, the risks of collision with another Off endeavours associated to a University project. The Launch and In-Orbit Insurance is considered the main area of space insurance being by far the biggest ‘premium satellite are also a concern once in-orbit. “founding fathers” of these companies were not experts spend’ compared to Pre-Launch or Third Party Liability Insurance. in the space field, but rather motivated and talented Launch and In-Orbit Insurance addresses risk of loss of all or part of the satellite ‘asset’ arising out of loss of, damage to or failure of the satellite from ‘Launch’ until one year after. 10. Nano and Microsatellite Market (Geographic Information system, Payload, Space Science, Satellite Communication, Satellite Imagery, Remote Sensing, Scientific Research, Reconnaissance, Satellite Launch)- Worldwide Market Forecast (2014 – 2019) 46 47 Let us finalize by revisiting the financing scheme of the EuropeanC ommission that can be reached by Small Satellite companies. Through Horizon 2020, the European Commission aims at increasing Europe’s competitive position by strengthening scientific knowledge and by stimulating innovation. In addition, the Commission wants to challenge business university students with a big passion for space. This Thales. Microsatellites today are Operational in purpose and academia to collaborate in creating solutions for pan-European societal challenges, such as climate change, ageing is clearly the case of GAUSS (Italy), ISIS (Netherlands) and important project budgets and investments are population, food safety & security and affordable renewable energy. or GOMSpace (Denmark). From a first project financed required for these programs to take place. Therefore by university grants a small start-up was created with these companies are part of larger groups that can Horizon 2020 has started on 1 January 2014 and is the successor of the FP7 programme. The budget is € 80 billion for own personal (and/or family) resources. Also, in many provide the necessary resources and financial capacity the 7 years duration of the programme. cases these companies entered and won public young to support these programs, which span very long in Of course other funding schemes at National and Regional level for science and technology and for help entrepreneur entrepreneur competitions, such as Novanano (France) time and must, in many occasions, withstand important initiatives may exist for each country and it will be up to each company to pursue all possible funding schemes. with substantial prizes that allowed them to launch delays and over budgeting. operations and support their first hires. Let us now see the case for Brazil: A small but similar case is Spanish company Deimos, Some other companies such as Clyde Space or Nano also interviewed during the Project. Deimos has now Brazil is a little behind Europe when it comes to Small Satellite initiatives but, as we saw in Chapter 4, there is nonetheless Space come from a different origin: in those cases launched 2 Operational Microsatellites and has quickly much activity at present, with several recently launched or on-going Cubesat projects in the pipeline for launch in the experts in space and/or technology fields launched the become in the past decade one of the leaders in the next months. new company. The founder of Clyde Space was formerly commercialization of Earth Observation / Imaging The latest PNAE already has budget allocated for Small Satellites. Even if the figure may vary throughout the next decade, a senior expert at UK’s SSTL and Nano Space was born services. A dozen experienced but young engineers from the table below shows the amount especially allocated (roughly 1% per annum) in and belongs to the Swedish SSC Group. other space services companies with own resources started the company. The company won several good However it is important to mention that the people contracts and was able to quickly grow on internal interviewed insisted on a few interesting points with revenue. Of course cash flow was always an issue as regards to the long-term sustainability of their companies: with any small growing company. Therefore, in order •Public financing schemes and/or civil projects to be able to grow faster and larger covering more of need to continue existing, as they are still the main the value chain of the space sector, the company was source of financing Experimental Nanosatellites acquired by Spanish electric Group Elecnor becoming at present. this way the space division of this group.

•Profitability for projects at present is low and In summary, we see that European Microsatellite therefore investment capacity based on revenue manufacturers have opted (or have been forced) to is also very limited. incorporate into larger groups in order to be able to have access to more robust financial support, as required by •A larger coverage for the whole value chain sector operation. seems to be the agreed way to proceed by all these companies. The continuation of both Experimental and for Operational Small Satellite projects in Europe still largely resides •A potential consolidation / merge of companies in the support from National programs. Each country and or acquisition by larger groups would not be has its own space policy and objectives both civil and unexpected in the near future. military and they also integrate the European Space Agency. Workload return from the ESA to each country is The case of the main European Microsatellite proportional to their financial contribution. manufacturers is different. Let us recall on companies such as SSTL (Airbus DS), Luxspace (OHB System) and 48 49 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

For Experimental Nanosatellites the financing in Bank offers several financial support mechanisms Its reach covers the whole innovation value chain with Brazil is likely to come from the same sources as to Brazilian companies of all sizes as well as public focus on strategic actions that can provide structure and in recent times, that is Government agencies and administration entities, enabling investments in all an impact on the sustainable development of Brazil. institutes such as the AEB and the INPE with potential economic sectors. In any supported undertaking, contributions from some States, such as Rio Grande from the analysis phase up to the monitoring, As related to this Project it is relevant to say that the do Sul to support the development of new initiatives. the BNDES emphasizes three factors it considers FINEP is sufficiently informed of the efforts performed strategic: innovation, local development and socio- and is alert of potential requests for innovation programs For Operational Nanosatellites Government (Civil environmental development. related to Small Satellites. and Military) will also be the main financing source through different agencies. Also the BNDES can be an important partner for (*) To close this whole section on financing, let us briefly foreign investors to be able to understand and access look at Venture Capital financing.W e have not seen For Operational Microsatellites the main initiatives opportunities offered by the Brazilian economy. much significant activity from this type of investment are expected to come from new space champion firms in the Small Satellite segment in Europe or in Brazil. Visiona. As said earlier in Chapter 4, Visiona is looking As related to this Project it is relevant to say that the On the contrary we have seen a very important entry in to develop their own Microsatellite platform as a BNDES was a member of the Brazilian team visiting the US, especially in California for new Operational Micro complement to their current large telecommunication European companies and also an active player or and Nanosatellite commercial companies (SKYBOX, geostationary spacecraft. Financing for this will be internal meetings and workgroups12. PLANETLABS, etc.). If these companies prove a good directly related to Government programs at first. business case with exponential growth (as desired by Even if Visiona wants to, obviously, commercialize Venture Capital investments) then both European and this future Microsatellite platform and associated Brazilian regions may see a replication of the entry of services internationally the main focus today is on these financing sources. convincing internal customers in Brazil and unlocking necessary budget. Likewise to European Operational Microsatellite integrators, Visiona is also incorporated into a larger joint venture.

For the non-Brazilian reader is it interesting to learn The FINEP13 is an institution in charge of financing about the BNDES and FINEP as the main National developments related to Research and Innovation financing institutions. and directly depends from the MCTI (Ministério de Ciência, Tecnologia e Inovação) – Ministry of Science, Technology and Innovation. Its mission is to promote the economic and social development of Brazil through public funding helping companies, universities, technological institutes as well as other The Brazilian Development Bank (BNDES)11 is the public and private institutions. main financing agent for development in Brazil.T he 12. The author of this Final Report is especially thankful to Mr. Daniel de Lima, representative of the BNDES for his contribution to the Project. 11. http://www.bndes.gov.br/SiteBNDES/bndes/bndes_en/Institucio- nal/The_BNDES/ 13. http://www.finep.gov.br 50 51 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

7.1. CONFERENCES AND GROUPS OTHER There are plenty of technical conferences in the space sector around the world and many of them have sessions INFORMATION related to small satellite technologies, services, etc. However, the sector has gained sufficient importance over these past years and now we can find several 7. conferences worldwide specific for small satellites. As related to the scope of this Study, below is a list of recommended conferences:

EUROPE has these 3 main meetings:

• 4S Symposium: Small Satellites Systems and Services (ESA)

• Symposium on Small Satellites for Earth Observation (IAA, DLR)

• European Cubesat Symposium (VKI)

BRAZIL holds this year the:

• 1st Latin American Cubesat Workshop (AEB)

(*) Even if out of the scope of this Study, it is completely necessary to mention the following meetings in the United States:

• Small Sat Conference (Logan, Utah)

• Cubesat Developers Workshop

Spring (San Luis Obispo, CA)

Summer (Logan, Utah)

(*) Three other very relevant space international events (for those readers who may want to discover more about the sector):

52 53 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Science Subsystems labs Universities Insurance

PLAYLOADS

• International Astronautical Congress (IAF) Foreign 7.2. SPECIAL WORKGROUP Partners PRODUCTS • Space and Astronautics Forum and Exposition (AIAA) for small satellites IN Integrator (*) Even if mostly North American, the CANEUS Small BRAZIL SERVICES Satellite Sector Consortium (SSSC) is an interesting A very interesting side initiative fruit of the work performed international group “dedicated to the micro and during this Project has been the creation of a special Financing Launchers nano technology implementation, coordination, and Work Group in Brazil by the MDIC for the push of the standardization of the small (1-100 kg) satellite industry. Small Satellite industry. The Work Group core members The SSSC oversees five projects and initiatives dedicated are: MDIC, AEB, INPE, VISIONA. to (1) developing standards so as to ensure international interoperability, (2) identifying launch opportunities and Other invited members were AGDI and the CIENTEC from Users/ Ground services, (3) providing stakeholder liaison and strategic the State of Rio Grande do Sul as well as the BNDES. Customers Segment Data development, (4) addressing Intellectual Property and In this Work Group, 2 initiatives were pursued: ITAR issues in accordance with CANEUS International’s Processing broader mission, and (5) organizing launch certification First, the joint study and elaboration of a map for potential services.” Business Models following the CANVAS methodology. This is done for both Experimental and Operational Small The CANEUS SSSC is a recommended forum of action Satellites. for countries wanting to exchange on their views and initiatives for Small Satellites, likewise to the conferences Second, a study of the sector Topologies in Brazil and and symposia listed. a deep dive for each actor into aspects such as the Technology Readiness Level (TRL), time-to-market, the type of investments required or the market opportunities.

54 55 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

ere are a few conclusions that can be drawn from the work in this Project: H• The tendency for Small Satellite developments is growing worldwide and will consolidate in the next few years. • In understanding Small Satellites it is important to CONCLUSIONS take into account not only their weight (Nano, Micro) but also their type of application (Experimental, Operational) as this will affect many other aspects such as design, program schedule and management, financing, etc. • Small Satellite applications are extending rapidly 8. from civil and educational purposes (Experimental) to commercial business focus (Operational). • Standardization, with platforms and “plug-and-play” components, plays has become one of the key factors for the growth of Small Satellites, especially with the Cubesat standard. • Miniaturization is also a key factor for the success of Small Satellites, in both Nanosatellite and Microsatellite systems. • Europe is a clear leader in this segment with both traditional players as well as new Small Satellite companies. European companies predict sector stabilization with potential consolidations and / or acquisitions. • Brazil has had a good start in recent times and a real chance to grow much further this Small Satellite segment, with capacity to create industry, jobs and technology development. Of special significance is the Brazilian potential for becoming a world leader in dedicated launchers for this segment. • Potential lines of collaboration between Europe and Brazil are not only possible but, indeed, make sense to make both regions stronger in the global market. • Public investment is needed to support consolidation of companies until commercial business focus settles and private investment gets interested in the Small Satellite sector.

56 57 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

(Entrevista com os Atores do Setor Espacial) TABLE OF CONTENTS

IntroduCtion ANNEX 1.INTERVIEWS TO EUROPEAN COMPANIES & PLAYERS

2. Interviews to BRazilian companies & players 43

3. other interviews 69

58 59 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

INTRODUCTION EUROPE –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– This document is the Annex Document to the final report of the Study on the Brazilian and European Initiatives for the 1. IDR/UPM 17/06/2014 Development of the Micro- and Nano-satellite Industry. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– José Meseguer This Annex Document presents a compilation of all interviews performed during the course of the Project to Brazilian Professor, Escuela Técnica Superior de Ingeniería Aeronáutica y del Espacio and European companies and other players. Interviews were performed face-to-face as much as possible or using video Director, Instituto Ignacio da Riva conferencing when necessary. The order in which interviews are presented is chronological. Professor Meseguer is one of the key actors in the Spanish space industry with several decades as university professor For the interviews, a list of topics such as views on market, shared facilities and financing was, when possible, pursued. and also directing the Space Systems Laboratory affiliated with the School ofA eronautics and Space of Madrid, the This list is a little different for European and for Brazilian actors and also evolved with the Project development. Additionally, main school for this field and the one with longest experience in Spain. extra freedom was allowed when required to be able to collect views and opinions in a more open and exploratory manner. 1.1. ON COMPANY (IDR/UPM) Note that the fact that a particular topic was not covered does not mean that the company had no opinion on it but rather than some other areas were prioritized and discussed instead during the limited time available. MDIC IDR/UPM, Instituto Universitario de Microgravedad “Ignacio Da Riva” is an Institute of the Universidad Politécnica de Madrid (UPM) for R&D activities in the field of space science, microgravity and engineering. This Annex Document has been created by the Project Senior External Expert and reviewed by the MDIC (Ministério de Desenvolvimento, Indústria e Comércio Exterior) of the Government of Brazil. Today, IDR/UPM has a stable staff of more than 25 people (including Ph.D.s, engineers and technicians) plus a variable number of collaborators from the UPM that join the team for specific tasks.

For more information on IDR/UPM please see: http://www.idr.upm.es

Satellite Projects

UPM-Sat1 (micro satellite) launched in July 1995

UPM-Sat2 (micro satellite) to be launched in 2015-2016

Also brainstorming of a third satellite in the same weight-class

Goals and Future

The IDR will continue its space activities (as well as other commercial activities in the area of aerodynamics) but also has already considered fully spinning off from UPM. They have already started conversations with Airbus Defense and Space as these could be interested in integrating IDR within their structure.

Interview Notes: 1.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES (All reflected notes are opinions of the interviewed person and may or may not reflect the opinion of the coordinator of this Project.) The range of interest is 1-50 kg. However, 1kg Cubesats should not really be considered as satellites:

• Not much can be done with 1 kg class

• Many Cubesats end up in orbit but not working

• Cubesats are to be considered in the “toy” category

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Less than 25-30 kg range does not seem “useful” today. For ground station something simple can suffice:A ntenna on the roof and control computers for tracking and communication. “Image” is always important and especially with respect to journalists. IDR/UPM decided to create Engineer and developers of a “useful satellite” should be capable of developing all the systems of a space vehicle. a separated room with glass walls for journalists to come observe their ground station activities. Cubesats are OK but only for universities.

A space vehicle is a system and it must be seen as such – designing a space vehicle is truly a systems engineering exercise: everything is related to everything. This is what a >30 kg satellite can provide and one cannot obtain 1.5. ON FINANCING, ECONOMICS through a Cubesat development. Public financing of university projects for subsystem qualification can help national industry to develop payload Miniaturizing has risks such as: and technology.

• Radiation issues on electronics with charged particles. Government agencies must support and manage this type of project and also bear with the costs related to launch of small satellites. • Energy & battery concerns: solar panels in small satellites have very small surface area and space for batteries is very limited. The satellite should have autonomy to last sufficient time (X months) in orbit to European Space Agency (ESA) finances space projects as long as there is a scientific program as a basis.T his perform its mission. helps research and challenges current state of the knowledge. These satellites provide technology demonstration as well as qualification for private developments.

Cost of small satellites 1.3. ON MARKET: CUSTOMERS, SUPPLIERS As a quick indicator, micro satellite UPM-Sat2 will cost 600,000-800,000€ without the extra launch cost. Latin America has much interest in small satellites (no Cubesats). Main goals:

• Acquiring knowledge on how much space systems cost 1.6. ON LAUNCHER SEGMENT • Learning to better specify space systems It is no doubt small and launch opportunities are scarce. • Getting to know the full process: design (PDR, CDR, etc), manufacturing, integration, testing, etc. It is a very political segment where prestige is a key driver. Universities provide the perfect set-up and environment for 50kg class satellite development:

• Students can learn about systems engineering and about all subsystems part of a space vehicle and be trained for their professional work. 1.7. ON INTERNATIONAL COLLABORATIONS

• The industrial partners can develop, test and qualify subsystems. Qualification is a must before IDR/UPM has collaborated extensively in many European projects and is an active collaborator of ESA, having subsystems can be commercialized. written ESA’s Spacecraft Thermal Design Guideline. As an example of collaborations with Latin America, IDR/UPM participated in conversations with Mexico for the development of their space industry. With this respect, their opinion was that too many actors were present, too 1.4. ON INFRASTRUCTURE AND FACILITIES many universities and that the structure was too hierarchical and did not allow for an optimal development.

Perhaps Brazil already has everything needed already. As example these are the facilities IDR/UPM has: IDR/UPM is open to collaborate with Brazil to help in the development of the space sector and space industry. For clean rooms it is the launch provider who specifies requisites. For a normal satellite a 100,000-class room should be sufficient.T his type of room can be “home-made” built by one-self. IDR/UPM built its own clean room in such a way.

For vacuum chamber and thermal cycling IDR/UPM has bought a 1m3 chamber – the cost of this type of test facility should be completely reasonable for any university of small company budget.

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2. Nanosatlab/UPC 19/06/2014 • Technical reliability of product range ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– • Customer service Adriano Camps Professor, Escuela Técnica Superior de Ingeniería de Telecomunicación Director, NanoSatLab 2.4. ON INFRASTRUCTURE AND FACILITIES Professor Camps is leader of several initiatives in the area of Cubesats at the University of Catalunya. He is also a Brazil should create general shared facilities to: member of the Institute for Space Studies of the region of Catalunya. Also Barcelona, capital city of Catalunya, is host to one of the new European Space Agency’s Business Incubation Centres (ESA BIC). • Help the birth and growth of new industrial initiatives • Retain those companies and especially the people 2.1. ON COMPANY (Nanosatlab/UPc) Due to long wait times and expensive prices at external facilities NanoSatLab/UPC decided to create their own infrastructure and facilities. They currently have: NanoSatLab is a laboratory of the Universitat Politécnica de Catalunya (UPC) focusing on the development of satellites wit the “small-sat philosophy”, allowing cost-efficient and short development time missions. • Shake table • Thermal Vacuum Chamber & Sun simulators Today, NanoSatLab/UPC has several faculty, 3 Ph.D. students, more than 10 Master’s thesis students and over 40 Bachelor’s students. • Helmoltz Coils with air bearing

For more information on NanoSatLab/UPC please see: http://www.tsc.upc.edu/nanosatlab/ • Gyroscope • Amateur Ground Station Satellite Projects

Cat-1 (1U Cubesat) to be launched towards the end of 2014 2.5. ON FINANCING, ECONOMICS Cat-2 (6U Cubesat) to be launched in mid 2015 NanoSatLab has been financed initially from remaining “spare” money from other research programs that were Cat-3 MOTS (6U Cubesat) under development executed in an optimal way. So far, due to political decisions NanoSatLab has not been able to find direct national Goals and Future public financing in the space sector.

Main goals are to focus on Education and Training as well as to foster University Research in space technologies European Commision can provide financing (e.g. through FP7 programs) but as long as there is a scientific and help development of local SMEs. research goal to the project. Big public entities in Space (e.g. CDTI (Spain), CNES (France), DLR (Germany), etc) are normally only interested in large programs (above 100M€ budget) and are not showing interest in small satellite projects. 2.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES Cost of small satellites Cubesat class (1U, 3U, 6U, 12U) is a new segment that can allow for a lot of education training and research projects. Also for technology demonstration and even commercial applications. 1U Cubesat development cost: 60,000-100,000€ + launch cost 90,000€ 6U Cubesat development cost: 300,000€ 2.3. ON MARKET: CUSTOMERS, SUPPLIERS Currently suppliers of Cubesat platform and subsystem within Europe need to improve on: 2.6. ON LAUNCHER SEGMENT -----

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2.7. ON INTERNATIONAL COLLABORATIONS 3.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES NanoSatLab/UPC is participating in European Commision projects and has bought systems produced by European small Cubesats have so far mainly been developed and used as technology demonstrators. This is a market in itself with satellite companies. several private initiatives. They are very interested in collaborating with any type of industrial and/or academic endeavour in Brazil. They can share their experience in building the NanoSatLab from scratch and can provide expertise in nano satellite systems design, 3.3. ON MARKET: CUSTOMERS, SUPPLIERS integration and testing. The satellite business goes beyond the construction of a satellite. The whole space sector value chain includes: 3. DEIMOS SPACE 26/06/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– • Mission definition & systems engineering • Development of ground, space and user segments Ismael López Managing Director • Integration and overall validation Ismael López is one of the founders and Director of Deimos. • Launch and operations

• Commercial applications: products & services

3.1. ON COMPANY (Elecnor deimos space) All of these areas, from upstream mission definition to downstream commercial services are part of the space Elecnor Deimos is the technology company of Elecnor Group which operates in the Aerospace, Automation and sector and all present potential business opportunities. Remote Control, Information Systems, Telecommunication Network, Security and Technological Infrastructure The future of small satellites will bring commercial applications as long as the capabilities are high and differential Development. With more than 500 employees, Elecnor Deimos provides technological solutions for the following to other type of solutions. markets Aeronautics, Aerospace, Defense, Transport, Energy and Environment, Telecommunications and Security. SKYBOX, recently acquired by GOOGLE for 500 Million USD is a good example. Perseus (DAURIA+DEIMOS) will For more information about DEIMOS SPACE please see: http://www.deimos-space.com also be a good example.

Satellite Projects Earth observation and remote sensing through small satellites is going to explode. Deimos 1 (mini sat 100kg) launched in July 2009 (SSTL (UK) design) Deimos 2 (mini sat 300kg) launched in June2014 (SATREC (Korea) design) 3.4. ON INFRASTRUCTURE AND FACILITIES Note that DEIMOS SPACE works in many more things than satellite systems being active in almost the whole value Some views and advices on the potential future developments in Brazil: chain of a space project. On integration facilities: if possible companies will want to have their own integration capacity since this entails Goals and Future not only assembly but also all functional and system wide testing. DEIMOS did not have integration capacity for Deimos 1 but has now built this for Deimos 2 and beyond. In general business terms, DEIMOS SPACE wants to do keep developing their coverage of the whole space sector value chain and can work therefore in a wide variety of projects and customers. Perhaps for start-up companies or for the small satellites shared clean rooms could make sense.

In terms of present and future satellites, apart of operating Deimos 1 and Deimos 2, they have an agreement with On testing facilities: here shared facilities would clearly make sense. Here we see big opportunities, both for DAURIA for the Perseus constellation: a group of 8 6U Earth observation satellites that will complement Deimos private or public managed installations. 1 services. On ground segment: it can be interesting to share antennae. The infrastructure is the brain for the operation of satellites so this part should remain proprietary. But some facilities such as data storage, processing capacity, etc. could be shared.

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3.5. ON FINANCING, ECONOMICS in the scientific community and industry and is closely involved in many international cooperation programmes. DEIMOS has financed themselves the investments for Deimos 1 and Deimos 2.T his is the main reason why they The focus areas of the CNES cover a wide spetrum: want to control the whole space sector value chain. • Access to space Cost of small satellites •Civil applications Deimos 2 cost is around 60 Million € including development construction testing, launch and insurance. •Earth, environment and climate

•Space sciences 3.6. ON LAUNCHER SEGMENT •Security and defence The launch segment is not at all trivial and is a bottleneck in space sector today. The CNES has a workforce of more than 2,400 with over 1,800 engineers. One of the main issues launch services have is they are not reliable with regards to project timeline with very frequent and very often long delays in the order of months if not years. Russian-Ucranian DNEPR is an example For more information about CNES please see: http://www.cnes.fr of this. A different case are Indian launchers, which provide good timeline reliability but simply, in general, do not offer services to foreign programs outside of India. 4.2. COLLABORATIONS WITH BRAZIL For micro and nano satellites, since they go as secondary piggy-back launches it is not easy to have any say in the actual launch program. CNES has collaborated and continues to do so actively with many countries in satellite projects and in the assistance of helping this countries’ space sector develop. CNES worked with the Government of Brazil in the 90’s on the FBM (Franco Brazilian Mission) collaboration but unfortunately this was stopped in the beginning of 2000 3.7. ON INTERNATIONAL COLLABORATIONS because of budget constraints. Of course, CNES would like to continue the FBM collaboration the idea being that CNES would provide the satellite platform and Brazil perform the integration and testing. DEIMOS clearly develops its activity internationally. Even if based in Spain they have suppliers, customers and partners all around the globe. Additionally, other collaborations between CNES and AEB and INPE have taken place at different levels.

With regards to Brazil they are already actively exploring on business but would like to offer to do more of course since they provide services in the whole value chain of the space sector. 4.3. ON MYRIADE 4. CNES 01/07/2014 CNES provides a series of platforms / families of satellites categorized by size/weight and type of mission (SPOT, ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– PROTEUS, MYRIADE). Amongst the different families, the Myriade series is the one closest to the small satellite segment in that the Philippe Landriech size of its satellites fits within the 100-400 kg range (mini satellites), with focus on Earth Observation missions. Satellites Programmes Manager Myriade was started in the late 1990’s with the goal of bringing quick, low cost access to space. The first Myriade satellite mission (Demeter) launched in 2004. Today, Myriade can count 19 successful missions with 2 more are under development at present with expected launched towards 2016 and 2017. 4.1. ON COMPANY (CNES) The original Myriade was 130 kg with a 50 kg payload and a guaranteed life expectancy of 3 years. However, Founded in 1961, the Centre National d’Etudes Spatiales (CNES) is the government agency responsible for shaping CNES has observed a tendency in customers for larger payloads needs (up to 200 kg) and has now launched the and implementing France’s space policy in Europe with headquarters in Toulouse. Its task is to invent the space development of the Myriade Evolution series with total weight of around 400 kg and a guaranteed life expectancy systems of the future, bring space technologies to maturity and guarantee France’s independent access to space. above 7 years. Myriade and Myriade Evolution satellites are cost effective in terms of launch since they can be CNES is a pivotal player in Europe’s space programme, and a major source of initiatives and proposals that aim to carried as secondary or even tertiary payloads. maintain France and Europe’s competitive edge. It conceives and executes space programmes with its partners 68 69 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

In terms of financing and development it must be noted that CNES developed the Myriade family internally with its For more information about Novanano please see: http://novanano.com own budget and then later it was decided to share this platform with private contractors as said above.

CNES also has agreements with Airbus Defence & Space and Thales Alenia Space for the use and commercialization 5.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES of space systems using the Myriade platform. -----

4.4. ON MICRO AND NANO SATELLITES 5.3. ON MARKET: CUSTOMERS, SUPPLIERS At CNES any satellite below 30 kg is defined as a Nanosat. So far CNES has not developed a family of nano satellites analogous to other familiies in other class ranges. As market potential Novanano does not provide details but comment that the key for the future must be the new services that these Small Satellites will be able to provide with new applications and new uses. In this regard For now CNES is supporting the JANUS initiative, which is targeted at Universities and Engineering Schools in Novanano sees interesting opportunities and potential in collaborations with developing countries for specific France developing Cubesat projects. CNES supports technically and also provides key components. The goal is applications and needs. educational, i.e. to help students learn how a full space program is run. Also a goal is to potentially help SMEs (Small Medium Enterprises) develop key technologies. Examples such as the acquisition of Skybox by Google and Planet Labs are very illustrative of the type of potential for this industry. As a final note, CNES comments that even if there is currently no platform for Nanosats, they could potentially decide to develop this in the future. They do not see the Defence sector as a customer for the small satellite industry.

5. NOVANANO 04/07/2014 Also they do not see large companies such as Embraer in Brazil making small satellites. The low price being the ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– key of the success of the small satellite industry is not compatible with large organizations. As for existing industry they comment on leaders such as ISIS in the Netherlands or GOMSpace in Denmark and Stanislaw Ostoja Starzewski also mention that Germany has good providers for small satellite components. In a country with a very strong President and Co-Founder traditional industry Nova

Finally Novanano remarks on the vision of the Space Council in the UK for the promising potential of the small 5.1. ON COMPANY (NOVANANO) satellite segment of the space sector. Novanano is 5-year-old start-up company from France based in Lyon. Novanano presents itself as a Nanosatellite system integrator and service operator and proposes full chain, end-to-end solutions: from payload integration till 5.4. ON INFRASTRUCTURE AND FACILITIES in-orbit operations. Novanano believes that the development of common shared facilities is a positive idea for the small satellite Novanano has a workforce of 5 persons. industry. They say that the CSU (Centre Spatiale Universitaire) at Montpellier 2 University in France is a good example to follow. They present themselves as full system providers in that they say they can provide the full space service to customers. In order to be able to provide this full space service the strategy is that they connect with partners / In terms of location, Novanano thinks that the ideal would be to place shared facilities in the different regions subcontract for the different activities. where small satellites are being developed. Also there is no need to centralize these facilities at traditional aerospace poles (such as Toulouse in France) because the needs and competencies are not the same as those Despite the fact that the founders come from the University in Lyon, they do not consider themselves a “typical” of the traditional space sector. university spin-off company in the sense that there was no space program where they studied.

The first projects of Novanano were related to deployers for Nanosatellites and now they also develop full Nanosatellite services. The satellite systems that Nova Nano develops at present are for communication purposes. 5.5. ON FINANCING, ECONOMICS They have currently a project under development for ground sound detection with direct satellite communication. Novanano was initially created with own financing and then got support from main French innovation scene 70 71 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

actors: OSEO (National Innovation Agency), Chamber of Commerce and Industry, and Réseau Entreprendre. At this 6.3. ON MARKET: CUSTOMERS, SUPPLIERS stage they also have received financing from BusinessA ngels as well as from Customers. Some years ago many people said that Cubesats were only toys. That is no longer the case and even ESA does 6. von KARMAN INSTITUTE 07/07/2014 not say this any more. In exact words of the QB50 project: “there are plenty of things coming and this is just the ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– beginning. Cubesats are great for educational purposes but also can have real applications, such as: Dr. Jan Thoemel Project Manager of the QB50 initiative • Thermosphere measurement (in QB50) • Maritime communications

6.1. ON COMPANY (von Karman institute and qb50) • Aircraft communications

The Von Karman Institute is a non-profit educational and scientific organization. It provides post-graduate • Earth observation education in fluid dynamics and encourages “training in research through research”. Cubesat industry is exploding. QB50 used to be the largest initiative but now other commercial initiatives, such VKI has a permanent staff of approcimately 100 persons, among them 21 research engineers and 16 professors. as Planet Labs, already have larger constellations. (In any case it must be noted, for the record, that QB50 has Besides the permanent staff there are about 190 students and temporary researchers. different goals than these commercial initiatives).

Related to space, the VKI is a reference laboratory for the European Space Agency (ESA) with an agreement The United States is fully pursuing small satellite industry and applications. Even there seem to be initiatives in involving 10 research staff and more than 20 Ph.D students. Also it is now launching and coordinating a new China who is openly willing to take more risk and spend more money in space than other countries. space department to do research and training in the area. Within this we can find the QB50 coordination. In Europe, despite the big success of some private companies, public money is more averse to risk and, in a way, The QB50 is a collaborative international project coordinated by the VKI and funded by under the European less ambitious. Also in Europe there is still a lack of consensus at ESA and the Commission on how novel /how Commission’s Seventh Framework Programme – FP7. The purpose of the QB50 project is to achieve a sustained classical the approach for small satellite developments should be. and affordable access to space for small-scale research space missions and planetary exploration. The project will demonstrate that significant research, both scientific and technological, can be achieved in a small and compact programme. 6.4. ON INFRASTRUCTURE AND FACILITIES For more information about VKI and QB50 please see: Normally for Cubesats most things could be done internally. The more integrated a company is the better as the http://www.vki.ac.be value is in the knowledge. http://www.qb50.eu A good potential split if not all can be done internally would be to have functional testing in-house and externalize at shared facilities the testing for launch associated to launch interface. 6.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES For the goal of VKI & QB50 3U Cubesats are fine. 6.5. ON FINANCING, ECONOMICS For Earth Observation there seems to be a tendency towards 6U Cubesats. As mentioned at the beginning the QB50 project is a European Commission FP7 project with 8 Million Euros 12 Us seem to be the limit for a “satellite inside a box”. Going beyond this concept probably implies a separate support to help SME’s develop Cubesat technology. Then each company involved also has to provide part of the specific deployment system when speaking of launch and therefore that would be a different concept. funding on top of this amount.

Today picosatellites do not have a space really (yet?). In terms of the potential involvement of Venture Capital in Cubesat projects, in Europe we are not seeing the “craziness” we see in the Silicon Valley in the United States. In Europe today most money has come from the public sector but some companies, such as ISIS, are doing very well funding their growth organically. VKI wonders if Brazil will be able to develop/foster a US or a European approach towards financing of small satellite companies. 72 73 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

6.6. ON LAUNCHER SEGMENT For more information about ISIS please see: http://www.isispace.nl There are perhaps enough launches but maybe not enough “accessible launches”. In this sense, ISIS believes that there is a market for the development of dedicated small launch systems. Even if the cost of launching with a 7.1. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES dedicated launcher may be more expensive, some customers may be willing to pay more to get better schedules and timelines and specific orbital parameters. In any case ISIS believes that “piggy back” launches will always What is a Nanosat? The answer is not about a weight figure. It is about how development is run. The small exist and be used by those customers for which cost is the main driver. satellites are run as standardized low cost fast projects in a non-traditional way. In this manner, there are no complex systems engineering efforts, no redundancies and no multiple payload satellites. There seems to be a convergence in the launcher segment. It does not really matter anymore who you launch with. Market is driving this. The sweet spot today seems to be at 3U and 6U.

The option of launching from International Space Station (ISS) is a good alternative for those missions that do not Picosatellites require a minimum effort for launch at a minimum cost but the market is not developing in this require a long lifetime. direction so far.

7. Innovative solutions in space (ISIS) 08/07/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 7.3. ON MARKET: CUSTOMERS, SUPPLIERS Since ISIS is a system integrator they get to speak with many involved in the sector and they can see the market Abe Bonnema is growing much more than anticipated. This is great but this is a fear that this could be a “bubble”. Market will Co-Founder and Sales and Marketing Director saturate if all competitors do the same thing.

Large small satellite constellations are a powerful concept for the near future because of the number of satellites 7.1. ON COMPANY (ISIS) that allow high revisit time rather than because of specific technology. ISIS is a young and fast-growing company in the small satellite domain. Innovative Solutions In Space was founded th on January 6 , 2006 as a spin-off from the Delfi-C3 nanosatellite project from Delft University of Technology in 7.4. ON INFRASTRUCTURE AND FACILITIES the Netherlands. Ideally it would be desired to have all facilities and equipment in house but of course this costs money. ISIS is a vertically integrated company with a focus on delivering turnkey solutions based on small space systems. Having built all the required capabilities for providing turnkey solutions to customers over the years, ISIS now has ISIS has now clean rooms and a shock test facility. In future they would like also to add vibration / shaker test a broad portfolio that it can offer as stand alone products or services to customers as well: capacity and a thermal vacuum chamber, perhaps in collaboration with French test leader Intespace.

• Engineering Services They think a good compromise can be to have clean rooms for assembly and integration and then to hire out final testing. • Satellite Products

• Missions and Platforms 7.5. ON FINANCING, ECONOMICS • Launch Services ISIS is a spin-off of TU Delft but TU Delft is not a shareholder. The growth of ISIS in these past years comes from • Nanosatellite applications re-investment of profit coming from project alone.

• Hands-on training. Incubator environments are great for start-ups but it is important that companies are run as companies from the ISIS is clearly one of the leaders in the world today in the small satellite business. beginning. Access to “easy money” is not necessarily a good thing in that respect.

ISIS counts at present with around 40-50 people. ISIS comments that they believe building up a commercial industry requires a pace that is too fast for public funding schemes. They do not believe that public institutions (European Commission or MDIC in Brazil) can help

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there. But they think that MDIC could support in developing or assisting with credit schemes / risk bearing so that GOMSpace is clearly one of the leaders in the world today in the small satellite business. small start-up companies do not risk disappearing from a one mission failure. GOMSpace counts at present with over 30 people. Also, they ask MDIC to try to assist in simplifying all bureaucratic work for start-ups as this can be too time consuming for small companies. This is not a showstopper but can definitely be a hurdle on the way. For more information about GOMSpace please see: http://gomspace.com

7.6. ON LAUNCHER SEGMENT 8.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES There are perhaps enough launches but maybe not enough “accessible launches”. In this sense, ISIS believes ----- that there is a market for the development of dedicated small launch systems. Even if the cost of launching with a dedicated launcher may be more expensive, some customers may be willing to pay more to get better schedules and timelines and specific orbital parameters. In any case ISIS believes that “piggy back” launches will always 8.3. ON MARKET: CUSTOMERS, SUPPLIERS exist and be used by those customers for which cost is the main driver. At the moment there are some examples of Venture Capital’s investing strongly in companies in the Silicon Valley There seems to be a convergence in the launcher segment. It does not really matter anymore who you launch in California. Also we see a lot of government money in every country. This seems to be a little “bubble”. with. Market is driving this. The market needs to stabilize when applications and business models are more clear and settled. And then some The option of launching from International Space Station (ISS) is a good alternative for those missions that do not companies will fall. And this will make the sector more robust. require a long lifetime. Companies need to think of their long-term sustainability probably widening their coverage of the whole value chain, both upstream and downstream services. 8. GOMSPACE 05/08/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 8.4. ON INFRASTRUCTURE AND FACILITIES Søren Pedersen Sales Manager -----

8.1. ON COMPANY (GOMSPACE) 8.5. ON FINANCING, ECONOMICS GOMSpace is an entrepreneurial company incorporated in 2007. The company is based on the experience gained Their growth so far has been purely organic with reinvestment of earnings. They have investors on-board now, by the entrepreneurs while doing research and development at the University of Aalborg in Denmark. which get at the moment some return at the end each year but their interest is on long-term sustainable growth.

The entrepreneurs were the driving force behind the first European Cubesat, called AAU-Cubesat, which was They are interested in expanding to more countries but only if it makes sense. They could form Joint Ventures but launched in June 2003 and has since been involved with a number of other university/educational satellite they would need to study well who has the control of the venture. projects GOMSpace has significant and broad expertise within small satellite technology and concepts with focus on 8.6. ON LAUNCHER SEGMENT integrated solutions. They do electronic and software engineering with focus on developing cost-effective and reliable solutions for small satellite systems. Another significant area of expertise is Model Based Control and ----- Estimation. GOMSpace can offer full mission solutions based on their portfolio of subsystems and extensive know-how.

Their customer’s base is truly global serving over 40 countries.

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9. NANOSPACE SSC 06/08/2014 9.4. ON INFRASTRUCTURE AND FACILITIES ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– ----- Tor-Arne Grönland President 9.5. ON FINANCING, ECONOMICS

9.1. ON COMPANY (NANOSPACE SSC) NanoSpace started from a university project with ESA and European Commission funding for innovative research. Agencies and governments need to keep supporting technology development initiatives until products are ready NanoSpace is a full subsidiary of Swedish Space Corporation SSC group. Its mission is to develop and provide for commercialization. Then is the time where other type of financing such as Venture Capital is interested and products for space based on modern technology. MEMS (Micro Electro Mechanical Systems) are the core will come in. technology in NanoSpace’s products. They believe that MEMS are an enabling technology to open new frontiers in space.

Their main product line is on miniaturized propulsion systems. These can prolong the orbit life if Nanosatellites, 9.6. ON LAUNCHER SEGMENT which is currently more important than many people in the sector, are saying. The best thing would be to have Dedicated Launchers. These are more expensive and customers at present (e.g. The SSC group is very diversified with over 700 employees.T heir largest business is a Ground Station Network universities) cannot afford for these but they will come, it is a matter of patience. As capabilities go up, value will and associated services, which is the world leader in terms of the passes they manage. They operate also a test go up and the capacity to pay for this type of launches will then be there. range for sounding rockets, drop tests and balloon flights. Finally they also do works for the military. The interesting question is who is the main driver. Are the satellites pushing the launcher segment of the other For more information about NanoSpace SSC please see: http://www.sscspace.com/nanospace way around? As a side comment, SSC already has cooperation in place with Brazil for Sounding Rockets, SSC buying the rocket 9.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES motors from Brazil. ----- 10. ASTROFEINWERKS 06/08/2014 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

9.3. ON MARKET: CUSTOMERS, SUPPLIERS Stephan Roemer Head of Space Project Development and Space Sales The general belief in the period from 2003-2010 is that Nanosatellites were just “toys” and in a way was true. This is, however, not the case anymore.

Still the business is immature. There are too many companies and initiatives today. Consolidation is needed and 10.1. ON COMPANY (ASTROFEINWERKS) probably mergers or incorporations will happen. Astrofeinwerks (Astro- und Feinwerktechnik Adlershof GmbH) was founded in 1993 and focuses mostly in Nano The business needs to be professionalized with developments in areas such as: and Microsatellites from 1 to 300 kg. They offer services from concept to final product, covering the whole value chain in satellite development: they can do full satellites, subsystems and components and also they make test • Mass production facilities. They also provide services including joint developments, education and training.

• Business development Their customer’s base is very international with customers in Europe, the US and Asia. Their main customers are both established industries as well as agencies in Europe and also in developing countries. • Finance Astrofein is the 4th largest company/institution in Germany for space matters.

Astrofein counts at present with over 85 people. 78 79 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

For more information about Astrofein please see: http://www.astrofein.com • Piggyback: 3-5 Million US Dollars for 100 kg to 500km low Earth orbit.

• Generation Orbit: 2.5 Million US Dollars for 45 kg.

10.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES • Launcher One (Virgin Galactic): 7 Million US Dollars for 10 kg.

----- Dedicated Launchers are the key to the Small Satellite segment. They can bring cost down and this will make companies accept higher risk and therefore new solutions and applications will be possible. 10.3. ON MARKET: CUSTOMERS, SUPPLIERS In general, the launching cost must go down. For Microsatellites: 11. CLYDESPACE 08/09/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– In the mid 1990’s Microsatellites (50-200kg) were “toys” for universities to play and learn. An example of this type of system is the Myriade from CNES. Now we see that Microsatellite operation can actually earn money, also as Robin Sampson lifetime has increased with more reliable components. Even we are starting to see Microsatellites in geostationary Sales Manager. Alasdair Gow, Sales Engineer orbits as complement to large satellites. Clyde Space was visited in their premises in Glasgow, Scotland as part of an official visit part of the Project defined For Nanosatellites: Terms of Reference. They started around a decade ago with 1U and 3U but now people want more payload capacity. The story seems to be very similar to the one with Microsatellites one decade before. It is not likely, however, that any “real” money be made in the next 5-10 years by operating Nanosatellites. 11.1. ON COMPANY (CLYDESPACE) Clyde Space was founded in 2005 and today is an award-winning supplier of small and micro spacecraft systems. They are mostly kept busy with work on high performance power subsystems, DC.DC converters, lithium polymer 10.4. ON INFRASTRUCTURE AND FACILITIES batteries and high efficiency solar panels, typically for Small Satellite missions.

----- Apart of their product line, Clyde Space has completed also in 2014 an advanced nanosatellite platform, Scotland’s first satellite, in conjunction with leading academic and commercial organisations in the UK and the rest of World. 10.5. ON FINANCING, ECONOMICS Clyde Space customers include international universities, commercial companies and government organisations. Approximately 80% of Clyde Space sales are outside of the European Union and over 95% outside of the UK. As a company with experience in the sector and that has seen many companies evolve and grow these are some advices from Astrofein to Brazilian companies: Clyde Space counts at present with 35 people.

• Companies could start first developing components and then move to subsystems and then to whole For more information about Clyde Space please see: http://www.clyde-space.com systems. • They should not rely only on space business and try to work also for aircraft, automotive, etc. Also they 11.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES should be careful with relying excessively on government money. ----- • Companies should try to go to international markets and not only stay national.

11.3. ON MARKET: CUSTOMERS, SUPPLIERS 10.6. ON LAUNCHER SEGMENT The market has been growing exponentially and now this is a sector with double-digit growth. We are starting The launchers are the drivers for cost and timelines. Some examples of prices: to see the shift from university training and technology demonstration projects to real commercial applications. 80 81 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

However there may be a market overheating at present with “everyone” wanting to set up a Cubesat company Today Clyde Space ownership is split with Mr Clark holding 60%, 2 local private equity investors holding 35% and these days. It is very probable and actually necessary to have some consolidation in the market in the near future. the staff with 5%.

In Europe the market is also now affected by European public money now with ESA finally starting to get involved in funding Small Satellites. 11.6. ON LAUNCHER SEGMENT In terms of applications, disruptive technologies and miniaturizations are allowing new uses and also the beginning Launch is a huge problem and is restricting growth of the industry. Additionally, these days Russian launches are of constellations for: not an option anymore. Europe has been slow and really needs to catch up on this area. • Communications (Internet, Outernet and data distribution) Dedicated Nanosatellite launchers are in demand for sure to try to reach specific orbits with specific launch date • Earth observation and orbital parameters. So far some such systems exist but only for military purposes and are not economically • Disaster monitoring viable.

We are seeing a tendency also from 1U and 3U Nanosatellites to 6U and 12U. The prices of this type of launch will be high at the beginning but demand will bring it down, especially with the potential growth of Nanosatellite constellations of tens, hundreds of spacecraft. Big satellite operators can see the interest in integrating Cubesats as part of their networks (with Cubesats pointing up instead of down for example, as part of Machine-to-Machine communications the Cubesats being 12. THALES ALENIA SPACE 11/09/2014 nodes of larger constellations). However these companies are waiting to verify that technology is really fully ready. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Similarly, military and defence are clearly interested in Cubesats and associated technology but are still reluctant Thales Alenia Space was visited in their premises in Rome, Italy as part of an official visit part of the Project defined and are waiting to understand if the technology has the right level of readiness. Also they are waiting to see the Terms of Reference. potential new applications that Cubesats will bring.

The cost of responsibility is high and this could kill the whole concept of “low-cost” space. Insurance cost and/or 12.1. ON COMPANY (TAS) underwriting by governments can be a potential showstopper in the shift towards more commercial applications. Thales Alenia Space is one of the largest space companies in the world, integrator of large telecommunications satellites as well many other space systems. It is joint venture between French Thales group and Italian 11.4. ON INFRASTRUCTURE AND FACILITIES Finmecannica group. In order not to loose focus out of Small Satellites we will focus on the insights from the meeting and refer the reader directly to their website that contains much information about the company for Clyde Space has a clean room today and thermal chamber that they acquired from a second-hand sales general information: https://www.thalesgroup.com/en/thales-alenia-space opportunity. In terms of facilities they would like to have a larger thermal chamber.

Note that Clyde Space expects to move to a new location with 3x more space before the end of 2014. This space is much needed for operations today and will be important for expansion and growth. 12.2. ON MICROSATELLITES

For the required tests, as demanded by customer’s specifications, they externalize to facilities and/or universities. The Small Satellite is becoming very interesting for larger satellite integrators, with the 2 main advantages being: In general however, they try to sell already tested and developed products, testing only new products or when • Lower development costs important modifications require new acceptance. • Shorter project timelines

11.5. ON FINANCING, ECONOMICS However, for the company like TAS the entire value chain needs to be changed. In order to do this TAS is at present having discussions to created Roadmaps to achieve this change: Craig Clark created Clyde Space, who was an experienced space systems engineer, Head of Power Systems • Technologically more work has to be done to get proper Technology Readiness Levels (TRLs) in the working at SSTL. The company was initially funded with Mr Clark’s money (from the “lucky” sale of this London miniaturization of systems. home) and has seen 100% growth every two years in terms of revenue and headcount. They did get some levels of public aids for technology development at times but the main source of growth has been organic coming from • Also work is needed in terms of production and manufacturing. revenue. 82 83 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Applications and possible missions for Microsatellites include. 13. GAUSS 11/09/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– • Constellations of Micro SAR (Synthetic Aperture Radar) satellites. This type of configuration can allow for high revisit times. Launch could be done from dedicated launchers from aircraft. The main customers for Chantal Cappelletti, CEO this type of application would be Military. • Space debris monitoring. Again here constellations can be an affordable solution merging optical and GAUSS was visited in their premises in Rome, Italy as part of an official visit part of the Project defined Terms of Reference14. radar data. The main customers here would be institutional such as ESA). • Earth Observation applications • Data handling and communication integrated systems 13.1. ON COMPANY (GAUSS) • Maritime surveillance Group of Astrodynamics for the Use of Space Systems (GAUSS) G.A.U.S.S. is a limited liability company carrying with more than ten years of experience in the field of microsatellites.T he company is a spin-off from the Scuola di Ingegneria Aerospaziale of the Universitá di Roma. 12.3. TAS MICROSATELLITE PLATFORM G.A.U.S.S. is the only company in the Italian panorama to have gained the experience of 6 differently shaped At present TAS is working on developing a Microsatellite platform called NIMBUS. This would be based on their and sized satellites launches. The company business is mainly related to the design and realization of Nano and existing PRIMA platform. Microsatellites, which are also intended as CubeSat, PocketQube and releasing platforms. These are built by universities and research centres around the world, thus letting G.A.U.S.S. being a small satellites launch provider. The NIMBUS platform would be in the 100 kg range with a mass split of 50% payload, 50% platform. Typical mission duration would be in the order of 2 years, potentially extending up to 5 years in the future. These satellites G.A.U.S.S. activities include structural design, realization and integration of the main subsystems and payloads and could be launched by Small launchers such as ESA’s VEGA but also by dedicated air-launch vehicles. all the ground segment operations. The scientific and educational mission of the company is also very important: several experiments are boarded on the microsatellites. NIMBUS will complement the Myriade based platform that TAS can commercialize (as well as Airbus DS) by agreement with French CNES. The company aims at helping educate from high school to university students, both in the national and international territory, in the space sector.

12.4. ON NANOSATELLITES G.A.U.S.S successfully launched UNISAT-5 and UNISAT-6 satellites in 2013 and 2014 respectively, releasing a dozen of microsatellites into orbit. UNISAT-7 is expected to launch in 2015-2016. TAS is not currently working on Cubesat type developments. Their vision on Nanosatellites can be summarized in For more information about GAUSS please see: https://www.gaussteam.com these points:

• Nanosatellites are mainly for educational and training purposes. 13.2. ON SECTOR • Nanosatellites can be useful for in-orbit validation of low TRL technologies to later be flown in larger platforms. The market is clearly growing but applications are the key: constellations for Earth Observation and Communications, biomedical research, etc. Also important is, of course, the continuation of education and training via Nano and • TAS is interested in partnerships with external SME’s to help them develop technologies. Micro satellites. • The Nanosatellite segment market is growing but the important part are the commercial applications that these systems can permit.

14. The visit focused on GAUSS capacities, facilities and on a very good informal exchange that unfortunately was not recorded fully for the purposes of this interview compilation. 84 85 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

14. BERLIN SPACE TECHNOLOGIES 23/09/2014 constellations of Nanosatellites with small swath may actually provide high revisit time but no real improvement to ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– lower revisit but high swath provided by single satellites today. Therefore, for Earth Observation the cost of image of current Cubesats is not that great. Tom Segert Director of Business Development 14.4. ON INFRASTRUCTURE AND FACILITIES 14.1. ON COMPANY (BERLIN SPACE TECHNOLOGIES) The current facilities in Brazil (i.e. INPE) are very good but are huge and oriented to big satellites. Therefore the cost of maintenance is very expensive. This is due to the fact that when governments create shared facilities it is BST (Berlin Space Technologies) was founded as a Spin-off from TUB (Technical University of Berlin). BST presents likely that they want to create the best of the best, therefore expensive. itself as a specialist for Small Satellite systems and technology. BST offers reliable and cost efficient solutions for high-resolution earth observation with up to 1.5 m GSD on the global market. All their products can be bundled An idea would be to create a cluster of companies with capacities that already exist, even from different sectors with comprehensive training and technology transfer programs. (automotive, aerospace, universities, etc). These companies would have facilities (thermal test, shakers, etc.) and provide services at 1/10th the cost of current national laboratories. At present they have a technology transfer Microsatellite project with Singapore.

In the future they would like to develop very high-resolution HD video satellites. Actually the SKYBOX concept and 14.5. ON FINANCING, ECONOMICS idea was originally from BST. They are at present exploring and asking companies to participate with funding. In return countries would get not only the satellite solution but also technology transfer. There is a very big challenge because in Germany there is no Venture Capital (in Europe this system is not working) and also with the “banking crisis” there is money for new companies. BST counts at present with 22 people. Some companies are relying on European public funding such as Commission’s FP7, ESA, etc. but BST has so far For more information about BST please see: http://www.berlin-space-tech.com no gotten any such type of funding. All their revenues come from commercial sales and growth is organic from cash flows. 14.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES ----- 14.6. ON LAUNCHER SEGMENT Everyone in the Small Satellite business is still looking for the market for Dedicated Launchers but no one has found the business case with numbers that will make the market explode. Each company has a vision but no solid 14.3. ON MARKET: CUSTOMERS, SUPPLIERS proven business case. There seem to be 2 trends at the moment: Therefore we see Small Satellites been flown asP iggy Back because no real justification exists for paying much • Traditional Space: SSTL in UK and SATREC in South Korea have built excellent Minisatellites in the more. Only military programs seem to be truly concerned for specific orbits and therefore willing to bear the cost 500 kg range. The trend now is to miniaturize and come to Microsatellites with same capacities. A good of a dedicated launch. example is Radar where the goal is to reduce from 1-2 ton to bring them to 500 kg even to 100-200 kg. A dedicated launch for a Small Satellite would be at least two times the cost of a Piggy Back launch today. • Cubesats started as 1 kg (1U). However after some time people have realized there is nothing useful BST is reluctant to the market of dedicated launchers. Instead believes more in sophisticated upper stages to be than can go inside. Therefore the move is now to 3U, 6U even to 12U and 24U. able to provide more specific orbits. From BST observations and analysis the “sweet spot” today in terms of technology readiness and applications seem to be in the 50-100 kg range.

BST believes that constellations are interesting but that it is important to make the numbers that proof that there is profit in the investment. High revisit times are no doubt very interesting but one needs to be careful as

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15. LUXSPACE (OHB) 23/09/2014 • Integration and functional testing should be done at the company’s own facilities. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– • For environmental testing, a central site makes more sense.

Jeroen Buursink, They themselves have only a workshop and externalize AIT at Liege, IABG, Intespace in Toulouse, etc. Head of Microsatellite Department

15.5. ON FINANCING, ECONOMICS 15.1. ON COMPANY (LUXSPACE) ----- As part of the large network of OHB companies, LuxSpace is offering innovative and economical services, maintaining state-of-the-art technology in Luxembourg. LuxSpace’s customer basis contains international agencies like ESA and EU aside Space industry, satellite operators and national institutions. 15.6. ON LAUNCHER SEGMENT LuxSpace was created in November 2004 as a daughter company of OHB AG (Bremen, Germany). Although For cost reasons, Piggy Back launches are the way to go. The cost of a launch of a small Microsatellite today is belonging to the international network of companies within the OHB group, LuxSpace acts fully independent around 500.000 Euros if launched in a normal launch. For this price, and as secondary or tertiary payload, Small and provides know-how, expertise as well as products and services to the European and global institutional and Satellites cannot dictate the orbit and therefore this makes it hard to create new applications. Today a normal industrial market in the fields of space and defence system engineering and application development. launch costs (at the cheapest) 20 Million Euros. If this cost was reduced in half to 10 Million Euros then a new interesting market could appear. Their strategic objective is to become the OHB Group leader in the 10-100 kg range. LuxSpace comments on the fact that ACS Cyclon 4 rocket, when ready, can be a very interesting launcher for Luxspace counts at present with 43 people. Small Satellites. Brazilian VLS could also be an interesting launcher. For more information about LuxSpace please see: http://www.berlin-space-tech.com 16. AIRBUS DEFENCE & SPACE + SSTL 26/09/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 15.2. ON SIZE, WEIGHT AND SMALL SATELLITE CLASSES Both Airbus Defence and Space (Toulouse, FR) and SSTL (Surrey, UK) were visited. Insights from both interviews are collected together below: -----

16.1. ON COMPANY (AIRBUS DS + SSTL) 15.3. ON MARKET: CUSTOMERS, SUPPLIERS Airbus Defence & Space (Airbus DS) is one of the largest aerospace companies in the world, integrator of large They do not believe that Cubesat size satellites have much market due to low reliability and low durability. At least telecommunications satellites, and many other space systems and of course a giant in commercial aircraft and a 6U or a 12U is needed to expect a life of over 2 years. military systems. Its space division was formerly known as Astrium. In order not to loose focus out of Small Satellites we will focus on the insights from the meeting and refer the reader directly to their website that contains LuxSpace positions themselves as clear competitors to UK’s SSTL. The “sweet spot” seems to be at 20-50kg. much information about the company for general information: http://www.space-airbusds.com There is not a huge market but it is the interesting point. Surrey Satellite Systems Limited is a subsidiary of Airbus DS focusing on products, systems and services for Small In fact, very few purely Commercial Microsatellites have flown to date.L uxspace has strong doubts on the viability Satellites. SSTL was born as a spin-off from Surrey University in the 1990’s and is today one of the world leaders of Californian companies Skybox and Planet Labs. in the Micro and Mini satellite segment with more than 600 persons employed.

For more information about SSTL please see: http://www.sstl.co.uk 15.4. ON INFRASTRUCTURE AND FACILITIES LuxSpace believes that a split should be made:

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16.2. ON AIRBUS DS CAPACITY AND STRATEGY ON SMALL SATELLITES Speaking of Brazilian initiatives Airbus DS thinks that: Airbus DS has neither strategy nor specific action lines on Nanosatellites (Cubesats). They can of course provide • ACS (Alcántara Cyclon Space) will not have that many customers as launching from the Equator is support with their capacity and expertise. mostly useful for geostationary or equatorial orbits and the market is not that big for a new comer. This is especially true, as the prices announced by ACS so far do not present any big revolution compared to the On Microsatellites Airbus DS has two different lines: competition already operating. Additionally ACS does not have clearance from American ITAR so it will be • SSTL’s platforms & services for Earth Observation and Telecommunications. impossible to launch from there.

• The Myriade platform from CNES that can be, by agreement, commercialized also by Thales Alenia Space and • Brazil has a very good opportunity further developing the VLS and especially the VLM as there are no Airbus DS. Airbus DS is very active with this platform having exported more than 10 projects. real Microsatellite launchers today. However Brazil must look beyond internal demand, as this will not be sufficient to sustain this industry.

On Dedicated Launchers for Small Satellites Airbus DS believes that there is indeed a need for this; there is a real 16.3. ON MARKET: CUSTOMERS, SUPPLIERS market opportunity for such systems to be developed as specific missions require specific orbital parameters and The cost of access to space is not the key question. The key question is whether there is a market for Small launch dates. Satellites and the answer is the range of applications that Small Satellites may provide.

Constellations are ok but to do what? The key is the applications. If services and applications are the same as BRAZIL those provided by larger satellites but cost is lower, then the answer is yes. 17. DIGICON 21/07/2014 Small Satellites are bringing many rapid changes to the space sector but not that fast. Perhaps this “new space” ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– will bring a revolution but for now, from Airbus DS they do not believe in this. They have never seen this type of revolution in the sector even if in the past it was always spoken of at different times. Luiz Alves Duarte Also Airbus DS alerts on the fact that Cubesat projects would not survive without public financing. Perhaps a few Californian companies are an exemption to this. 17.1. ON COMPANY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) DIGICON was founded by a Canadian engineer and first focused in the development of measurement systems for 16.4. ON INFRASTRUCTURE AND FACILITIES machines taking advantage of the lack of such products at the time.

Airbus DS has everything in-house so they do not have any needs. Today, DIGICON is a 2nd generation company run by 2 sons of the founder. The business in the present day is very diversified being active in several fields such as banking automation, ticketing, access control, etc. Brazil has the LIT / INPE and should maximize use of it. Let us review a little on DIGICON´s history with special focus to defence and space as this history is relevant to For Cubesats though, not many things are needed. Cost is a big driver! understand the current situation and intention of the company with respect to micro and nano satellites.

In the 1980’s DIGICON performed a strategic diversification effort moving to other business sectors, first defence 16.5. ON FINANCING, ECONOMICS and then aerospace:

----- DIGICON developed its first defence products with a portfolio of gyrometers and gyroscopes.T his started as a very small project at the beginning with no more than 5-6 people. The customer – the Brazilian army – acquired these products and then DIGICON continued to supply this customer growing and also started a first space project with 16.6. ON LAUNCHER SEGMENT the design and production of solar panels for 2 satellites being INPE the customer (1991-1992)

Having independent access to space has been so far historically a political strategy discussion of big nations or Also then DIGICON built solar panels for Brazilian-Chinese satellites CBERS 1 and CBERS 2, launched in 1999 economic areas. and 2003 respectively. For this new special infrastructure had to be built (2 clean rooms, dedicated space and 90 91 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

tooling, etc) & people hired to grow accordingly. Again the customer was INPE with whom DIGICON developed a • They would like to have their own dedicated capacities for integration and manufacturing very good exchange and knowledge transfer. Solar panels were not the only product built for INPE but also the panels deployment system, other power subsystems, batteries, mechanical parts as well as integration with main • And share future common testing facilities satellite structure. Also they comment on the fact that the vision must be to complement future capacity with that already existing in On of the main concerns of DIGICON is that, so far, space sector in Brazil has been very intermittent. Funding got the Sao José dos Campos pole. cut after CBERS 1 and 2 and then people and facilities at DIGICON had to be transferred from space sector to others, mostly aeronautics. 17.5. ON LAUNCHERS Since these times (2002-2003) DIGICON has been mostly active in aeronautics. They had to move from space system design, production, testing and integration to aircraft component manufacturer. Mind set and processes DIGICON does not have specific knowledge or any special opinion on the launch segment. had to change from a 1-time design effort to a repeatable build to print manufacturing environment. When asked about potential interest they can see perhaps future business opportunities in the manufacture of parts for rockets from ACS (Alcantara Cyclone Space) through AEL. 17.2. ON CURRENT PROJECTS Today DIGICON is partner with AEL but only in the manufacturing of structures and mechanical parts. They have 17.6. WHAT WOULD DIGICON EXPECT FROM MDIC? no major projects as was the case in the past. 1. MDIC should provide of course financing.I t is hard for a company to use their own internal resources in DIGICON sees the potential growth of the small satellite segment in Brazil as an opportunity to re-enter the space launching a new division. sector. In the case of DIGICON, because of its past background their case could be described as an “expert new 2. MDIC should find or coordinate the search forG overnment applications for the use of small satellites: defence, entrant”. research, Earth observation, etc.

3. MDIC should assist the region of Rio Grande do Sul to become a new pole for space, in complement to the Sao 17.3. ON MARKET José dos Campos pole. In terms of defence, for example, it would make sense to have separate centres for space. In any case, the vision must be of complementing each other rather than competing. DIGICON and AEL have discussed often on the topic of the potential market size and tendencies for the small satellite segment. They wonder if there is truly a market to grow or if small satellites, especially the nano class, 18. AEL 23/07/2014 will stay just an academic effort. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Everyone is super curious because this is such a new domain and quite inexpensive, therefore attractive, compared to traditional space. Also people remain curious and interested because it seems there is much growth for the Marcos Arend number of applications small satellites may bring. With regards to the geographical reach, DIGICON is interested in focusing first in Brazil internal demands for this 18.1. ON COMPANY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) class of satellites – for them defence and government applications are the point of focus today. AEL is a subsidiary of Israeli group ELBIT (75%) with also a 25% stake by Brazilian Embraer. The main fields of activity of AEL are related to defence so Embraer and the Brazilian military forces are the main customers. Today 17.4. ON FACILITIES the company revenue is split in 60% national and 40% international exports. DIGICON, as has been said earlier, already had to build special dedicated infrastructure and facilities for the past In space AEL began its activity in the late 80’s with INPE being the main customer. As an example AEL is the main projects. However most of this had to be dismantled when there was no further need. Still they could reuse some supplier of space components for CBERS 3 and 4. of the past facilities such as the clean rooms. AEL space is a world class leader recognized internationally with full qualification according to ESA standards for DIGICON’s views on the development of facilities is the following: realiability of space components and personnel trained according to NASA, ESA, etc.

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As an example of special dedicated facilities for space they count with 2 clean rooms, shakers, thermal vacuum In Brazil there are opportunities and needs because there is really no local technology in terms of subsystems and testing, etc. payloads for the small satellite industry. And all this will be developed in the coming years.

Coming back to ELBIT, AEL comments that their parent company has really no space division as such so for AEL Bus, subsystems and payloads are of course not the only areas that can be developed. There are other business the development and growth of space activities can be a fantastic opportunity to lead, within the ELBIT group, opportunities in the space sector for Brazil in areas such as Ground Segment, Mission Design, etc. this area. As an example, the UFSM (Universidad Federal de Santa María) was a partner to AEL in the NanoSatBr-01 recently launched. The collaboration was very positive and fruitful. Other universities such as PUCRS and UNISINOS are 15 18.2. ON CURRENT PROJECTS also good example AEL comments that from a purely economic and business point of view perhaps the development of small satellite Amongst many projects since the origin of AEL space, they have recently supplied on board computers to INPE, industry is not that interesting. However from a global strategic perspective it is fundamental that Brazil develops which are at present being integrated. INPE wants to also cover the GNC (Guidance, Navigation and Control) its own technologies to remain relevant and also due to ITAR export restrictions from the United States. systems for space vehicles. The market needs will probably be national in these next years but AEL says they want to also focus, hopefully AEL seems the best current opportunities within the defence sector. The PESE (Programa Estratégico de Sistemas soon, in exporting space technology. AEL has the development, production and international sales capacity to Espaciais) from the Ministry of Defense has identified and is trying to fill a big gap in terms of space systems that export equipment for space same as they do for aeronautics sector. Brazil has with respect to other countries. This can bring many opportunities for the boost of the space sector. Finally AEL mentions the current discussion on the creation of a special company focusing on nano satellites with In terms of nano satellites AEL wants to create basic structures and technologies for 1U, 2U, 3U and 6U platforms. the main participation (51%) by the state government of Rio Grande do Sul and other partners (49%) being AEL, These are the basis for a future development and supply of nano satellite systems and solutions. DIGICON and VISIONA.

18.3. ON MARKET 18.4. ON FACILITIES AEL sees a clear opportunity for the small satellite segment of the space sector in Brazil. Things are moving and Even if AEL counts with many special dedicated facilities for space, they do not have all capabilities. The state moving quickly. government of Rio Grande do Sul has a plan to invest in an institute16 that will have clean rooms, vacuum thermal So far INPE has been the main developer. But now there are new initiatives, big and small, within the space sector. testing, shakers, and also EMI/EMC (this one already existing). A good example of this is VISIONA (51% Embraer, 49% Telebras) which as been created to become the prime AEL believes that the current concentration of capacity and facilities in Sao José dos Campos is not positive. The developer for large space programs. INPE will of course continue to do research programs but the goal of VISIONA state government of Rio Grande do Sul wants to support in decentralizing this situation. The goal, of course, is not is focused in large commercial communication satellites. to duplicate laboratories but rather to complement. Since VISIONA is looking to be an integrator of subsystems this opens up a big window of opportunity for AEL as Also, sending people to Sao José dos Campos for testing and integration and all the associated management main subsystem supplier. AEL is already doing this for Embraer so the model and relationship could be analogous. costs are expensive. Even the prices of the LIT (Laboratorio de Integraçao e Testes) of the INPE are not cheap when But AEL wants to focus also and specifically in nano satellites.T he example of the recent acquisition of Skybox by compared to using laboratories and facilities in other countries. Google and also the interest within the PESE program for the development of lower cost constellations presents motivation for AEL. 18.5. ON LAUNCHERS The PESE is an ambitious programme and it may be the case that not all of it sees the light. Still it is a clear motor opportunity to move this market: AEL is critical of the Federal Government with respect to the launch segment and potential of Brazil. In the past there was an opportunity to sign an agreement between the United States and Brazil for the commercial use of • Remote sensing. the Alcantara lauch base but this was never signed. • Strategic communications (with large GEO satellites but also with small satellites constellations). 15. see later interviews to these academic institutions and others for a better understanding • Tactical communications. 16. see later interview to CIENTEC 94 95 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

Today, the agreement with Ukraine for ACS is positive but the launch infrastructure advances too slowly. They are working on a project that is 3 year long (oct. 2013 – sep. 2016) with expected launch in 2017 and are in charge of the development of the antenna system. There are 2 people currently working on this. INPE is the Additionally, the United States have not given authorization yet to launch ITAR satellites so where is the market responsible for the design of the satellite, integration, testing, etc. for ACS? UNIPAMPA has an on-going collaboration with German DLR on the development of antennae. The Ministry of Defence is also pushing for VLS and VLM is under development.

Globally launching nanosatellites should not be a problem, especially due to their low launch cost. Many opportunities already exist and many new initiatives will come which will, in turn, bring the cost down even further. 19.3. ON MARKET The Ministry of Defence of Brazil wants to further develop its space technology and capacities. They have many ideas and projects, also for nano satellites. 18.6. WHAT WOULD AEL EXPECT FROM MDIC? INPE of course also has much potential for the development of nano satellite projects in scientific and ground 1. MDIC should support the local development of laboratory capabilities such as integration, qualification, testing). observation purposes. 2. MDIC should help in the acquisition of very expensive space related tools and equipment. UNIPAMPA believes that in the future the interest of people in Brazil in the space sector will grow. Today most 3. MDIC should support specific space oriented training activities for personnel. people still believe:

4. MDIC should help and/or match private investment on space industry. As an example Canada is mentioned, • Space means expensive, slow and big who gives back to private companies up to 70% of the money invested in aerospace, upon proof that work as • Space is associated only to Sao José dos Campos been successfully completed.

4. MDIC should guarantee purchase of Brazilian developed space products. 19.4. ON FACILITIES 19. UNIPAMPA 21/07/2014 UNIPAMPA believes that it would make sense to create small groups or clusters. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– INPE already has all the integration and testing facilities at the LIT. A potential plan could be to develop other Marcos V.T. Heckler centres at other regions, both at universities and companies with special focus to nano satellites, since needs and requirements are different than for traditional space vehicles.

19.1. ON UNIVERSITY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) 19.5. ON LAUNCHERS UNIPAMPA is a relatively new university (2006) that was created within the move of the past 10-15 years in Brazil to create and help develop new academic institutions. The satellite UNIPAMPA is working on will be launched with financing fromA EB through the UNIESPACIO financing line, which is designed to help with launch costs for university projects. AEB is really the coordinator of all this. With regards to space, UNIPAMPA started its efforts only 1 year ago. UNIPAMPA is focusing on the design of antenna systems for space vehicles. In general terms nano satellites can be launched as piggy-back payload and therefore this makes the cost very low.

19.2. ON CURRENT PROJECTS Other topics related to launch: • As a curiosity they mention that they have an internal competition for the development of rockets by They collaborate with the Universidade Federal de Fortaleza in a small satellite project coordinated by INPE. The students but this is just a university contest. idea in this project is to create a network of nano satellites that can provide communication to remote areas where there are no ground-based communication services at present. • Potentially UNIPAMPA would also be interested in and could develop antennae and telemetry systems for launch vehicles. 96 97 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

19.6. WHAT WOULD AEL EXPECT FROM MDIC? 20.3. ON MARKET 1. MDIC should provide or help find financing to improve laboratories. UNIPAMPA for the moment is limited to UFRGS is not very positive about the market prospects. At the moment they think that nano satellites are mostly their antenna work. seen as toys. Therefore they do not see this segment supporting many jobs.

2. MDIC should coordinate with other ministries (mainly the Ministry of Education) a change in the education Nano satellites are to be seen interesting for research and technology demonstration. system where university laboratories not only have professors working in them but also specific dedicated research personnel. This type of figure, non-existent in Brazil, is common in places like Germany. 20.4. ON FACILITIES 20. UFRGS 21/07/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Big institutes are a failure in terms of speed and competitiveness. They are not aligned with market needs and how the real world works.

Luigi Carro The Embraer model is a good one to follow: they act as integrators but subcontract and partner with many small companies for the developments. 20.1. ON UNIVERSITY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) UFRGS (Universidade Federal do Rio Grande do Sul) has at present 4 professors related to space developments 20.5. ON LAUNCHERS mostly focusing in low-level architecture and transistor languages. The key question to UFRGS is on where the added value is.

In the past years they have developed projects that very well be applied to space. Most of the work they have Coming to the actual line of work UFRGS does, they do not see computers being the critical part since rocketry is been doing (and that has been tested at locations such as Los Alamos laboratories in the United Stated and also about materials and chemistry. the United Kingdom) has focused on low power and high reliability systems - therefore this is applicable to small satellites. They can even do research work in advanced A/D conversion. The main problem in Brazil is that there is no supporting industry in the region of Maranhao and the Alcántara launch site. Companies like AEL may be interested in these developments.

UFRGS is more involved in the computing part rather than in the sensor part. Software errors become more and more important and even things like malware are important to take into account. 20.6. WHAT WOULD AEL EXPECT FROM MDIC? University professors are moved by 2 factors: 20.2. ON CURRENT PROJECTS • New research potential Unfortunately UFRGS did not get money through FINEP for a joint project with AEL. • Money for projects

In any case, they have another project accepted and already running for the next 3 years. However they have not University looks at long-term research developed at a slow pace. It seems, however, that industry cannot afford received any actual money yet. and wait for this pace.

Of course they will keep applying for money in Brazil. MDIC should align industry expectations & university research timelines and create funding schemes accordingly.

UFRGS is active in international collaborations. In Europe, as an example, they are working, together with TU Delft in the Netherlands in a project on Reconfigurable Embedded Systems. Besides, they have another project withTU Delft and Politécnico di Torino that will start in November (this one being a Marie Curie project).

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21. PUCRS 21/07/2014 21.5. ON LAUNCHERS ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– PUCRS does not comment on this topic. María Cristina F. de Castro Fernando César C. de Castro 21.6. WHAT WOULD AEL EXPECT FROM MDIC? PUCRS is happy about the efforts from the state government of Rio Grande do Sul in trying to push the growth of 21.1. ON UNIVERSITY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSONS) a pole for space in the region. The goal is to be able to develop technology and products but clearly with a final PUCRS (Pontificia Universidade Católica do Rio grande do Sul) is very new to the space sector. They have worked industrial and commercial goal. for over a decade in advanced communications systems and now work, since 1 year, in their first space project. MDIC should help the state government of Rio Grande do Sul in succeeding to create a solid space industry in Also, but not related to this study, PUCRS has done some work in the past related to space in the area of the region. biomedicine. 22. UNISINOS 22/07/2014 ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– 21.2. ON CURRENT PROJECTS Willyam Hassenkamp The previously mentioned project PUCRS is working on is a 3 year project that PUCRS hopes will be the first of many more research and development projects in the space sector. The project comes the state government of Rio Grande do Sul with AEL being the project leader. 22.1. ON UNIVERSITY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) PUCRS is providing with a ground station and AEL the facilities for validation and testing. UNISINOS is building an Institute to do research in MEMS (Micro Electro Mechanical Systems) at present. UNISINOS has now been granted money by the Government for this. The work done at this Institute can be used in the development of nano satellites. 21.3. ON MARKET More specifically speaking the goal mid term would be to develop micro and nano thrusters, which is their main PUCRS sees that at present defence is the main driver for the development of small satellite technology in Brazil. interest. They already have an ongoing collaboration with Swiss partners for this. The armed forces are demanding to have their own technology for space. The main technologies to be developed would include: In the past all space programmes were contracted outside of Brazil but this has to change. CBERS saw some development in Brazil but this was limited. In this sense PUCRS sees a big potential growth for the small satellite • Ion Thrusters: more impulse but fuel is needed segment, being Brazil a continental country. • Hall Effect Electron Thrusters: less impulse and no fuel needed

Communications payload and applications could be the main focus for this new market. UNISINOS comments on an open collaboration plan with AEL that unfortunately is stopped due to the fact that no money has been granted to AEL. 21.4. ON FACILITIES Brazil tries to share always as maximum as possible all the infrastructures. However companies many be reluctant 22.2. ON CURRENT PROJECTS to share and/or open their doors, especially in the development of the first projects. As just mentioned above the current situation is stagnated due to the fact that no money has been granted to work on technology developments with AEL. UNISINOS being a private university they need external funding to be able to do work.

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A potential line of work could be explored with their Swiss partners but again they do not have funding available 3. MDIC (and/or other Ministries) should increase the amount of money invested. at present. 4. MDIC should/could analyse the above mentioned cross-sector impact of nano satellite technology into other fields when doing a business case for the sector. 22.3. ON MARKET 23. SMDH / UFSM 22/07/2014 It is not that nobody knows on the future market demand, it is rather that no one is asking the following question: –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– “why has nobody made any real money so far with the small satellite (nano) industry?” Joao Batista Martins At present there is no real market compared to what can happen in relatively short term, say 2-3 years time.

For the market to pick up in Brazil, defence will be the main motor. 23.1. ON UNIVERSITY & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) Afterwards, there seems to be opportunities for small start-ups that can and will make money. SMDH (Santa María Design House) lab is a spin-off from the UFSM (Universidade Federal de Santa María) involved Another interesting point is: “how and how much will technologies developed for the nano satellite industry in the design and development of integrated circuits and their tolerance to interferences related to radiation impact into other industries?” Perhaps the direct market of nano satellites is not so big but the transfer into other effects. applications and sectors is where a real Return On Investment can be made. Professors from UFSM work side by side at SMDH making it a strong actor in the field of radiation hardened integrated circuits. They count with several professionals dedicated 100% to the development of radiation tolerant 22.4. ON FACILITIES integrated circuits, which are a key technology to master for space vehicles that Brazil should invest more on because it is fundamental. The Federal Government should get a deeper knowledge of the technologies within the nano satellite segment in order to better decide where and how to invest effort and money. The involvement of SMDH/UFSM in space comes from the direct request by INPE for collaboration due to their special knowledge. As a matter of fact INPE’s facilities in the south of Brazil are located in Santa María. Money should be invested in multiple locations. Brazil is very diverse in cultures, mind sets, etc and this diversity can be used in a positive way. They collaborated strongly in the design and development of circuits and boards integrated in NanoSatBr01 launched on June 19th, 2014. The Federal Government needs to think of having at least 1 centre doing research in space in each State! More money must be spent as it is done in the United States or in European countries. Last, but not least, UFSM has recently created specific offerings of aerospace courses at the University.

22.5. ON LAUNCHERS 23.2. ON CURRENT PROJECTS Brazil has definitely one of the best geographical positions in the planet for launch so this should be used and SMDH/UFSM are already working on NanoSatBr02 expected to be launched end of 2015 and also involved in the money made. design phases of NanoSatBr 03 and 04.

ACS is moving very slowly, especially from the Brazilian side. INPE’s centre in Santa María is a good partner with strong involvement. Also, an agreement was made with Russia for Santa María to have one of the future Ground Stations for the GLONASS positioning and navigation system. 22.6. WHAT WOULD AEL EXPECT FROM MDIC? 1. Government should be more serious and focus in execution. 23.3. ON MARKET 2. No middle men: there are very good and talented people in the Government but there is a certain level in the hierarchy where things are slowed down and this should be eliminated. SMDH/UFSM believes that there is a very big market potential due to:

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• Much lower development costs 23.6. WHAT WOULD AEL EXPECT FROM MDIC? • 1U and ·3U standard platforms In Brazil there needs to be clearly MORE public investment for R&D. Despite all difficulties there are also many opportunities and so much remains to be done. SMDH/UFSM is very happy to see MDIC involved in the development The United States is clearly betting on the small satellite segment with hopes that this will become a true growing of the small satellite industry through this project. sector. As a general view, SMDH/UFSM believes the proposal needs to be: The important part is the range of applications for small satellites: • JOINT: all pertinent Ministries need to be involved • Communications • SPECIFIC: with clear and detailed timeline and milestones • Agriculture • SERIOUS: with real budget and periodic professional project management • Geo-referencing As for the involvement and action of Venture Capital moves, the SMDH/UFSM believes it is a great idea but first • Earth observation the Government should help develop technologies and projects, then start-up companies and only after these VC • Monitoring of borders will be interested in making investments.

SMDH/UFSM believes in the potential of Brazil as a country to develop a strong small satellite industry since Brazil 24. CIENTEC 25/07/2014 has clearly all the capacity needed for it. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– Leandro Nunes 23.4. ON FACILITIES The LIT at INPE should be used as much as possible to its maximum capacities and availability. Almost all tests 24.1. ON CENTRE & INTERESTS (AS COMMENTED BY INTERVIEWED PERSON) required for the space sector can be performed at the LIT and it is already in place. LIT counts with clean rooms, CIENTEC is the Institute for Science and Technology of the State of Rio Grande do Sul (other States have similar integration facilities, test facilities, etc. There is no need to create any more capacity. institutes).

The investment from the Government should be focused in the training of more and better professionals in the CIENTEC is set to become THE laboratory for the space pole that is being created in the State of Rio Grande do space sector rather than on new facilities. Sul. The goal is that CIENTEC becomes a common shared facility for use by industry and academia.

Also the Government should do more collaboration efforts with Europe. The origin of this project was the visit to Israel by several companies from Rio Grande do Sul, lead by AEL. Given the fact that Rio Grande do Sul is a region with strong industry in electronics, electromechanics and also counts with good universities, a space pole was launched, with special focus on small satellites. 23.5. ON LAUNCHERS In the space pole development project 3 workgroups were created: The Alcántara accident years back was a terrible event that stagnated any launch efforts for over a decade. • Industrial policy group However, there seems to be a new initiative by the Ministry of Defence called Astro 2020 (?) for pushing the development of small dedicated launch systems derived from sounding rockets and missiles. This could be the • Laboratory (this in CIENTEC itself as a matter of fact) embryo for future private endeavours within the launch segment of the space sector. • Universities In general terms, regarding launchers it seems that more could be done.

24.2. ON CURRENT PROJECTS The construction of all these facilities was approved already last year.

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Right now CIENTEC is working on the definition of requirements and technical specifications for facilities and 25. EQUATORIAL SISTEMAS 09/10/2014 laboratories such as climatic, electrical, EMI/EMC, and also mechanic installations. –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– The financing for this project must come from several different sources: César C. Ghizoni, President CEO • The State Government of Rio Grande do Sul has already agreed to cover part of the investment required for this development. • BNDES – CIENTEC is in conversations with them 25.1. ON COMPANY (EQUATORIAL SISTEMAS) AND PROJECTS • MDIC (via FINEP) – CIENTEC is in conversations with them In 1988 the birth of the Brazilian Chinese CBERS program brought new opportunities because INPE’s supply chain • AEL – CIENTEC also is in talks with private industry in Brazil was non-existent. An entrepreneur who worked at INPE at the time created Equatorial in 1996 with the mission of being a payload and subsystems supplier to CBERS. Since then Equatorial has been a leader space When asked about INPE and AEB, CIENTEC comments that they have not really started real discussions with INPE systems supplier also for international programs. but that they have very good contacts with them. In any case INPE should not worry since the focus is different. In 2004 talks began between Equatorial and large aircraft company Embraer and other Brazilian players to Regarding AEB, CIENTEC comments that meetings are already taking place. incorporate Equatorial into a larger group with no success. Finally in 2006 Matra Marconi (later Astrium, today Airbus DS) entered the company partially (today wholly owned). No collaborations with foreign countries in this area of small satellites have been discussed yet. 5 years ago there was a coordination and discussions through FINEP for potential collaborations in the field of electronics and Equatorial would like to become Brazil’s leader in the Microsatellite segment same as SSTL is the European plastics but it all remained at a questionnaire level and never progressed. champion in this segment.

For more information about Equatorial please see: http://www.equatorialsistemas.com.br

24.3. ON MARKET As related to Small Satellite projects it is very interesting to note that Equatorial elaborated the main study for The opinion and knowledge of CIENTEC with regards to the potential market is similar to what AEL may believe options for the SCD-Hidro for ANA (Agencia Nacional de Aguas) – Brazil’s National Water Agency. and aligned with the space pole of Rio Grande do Sul. Visiona is leading the procurement of these satellites only with foreign companies as the final specification The main areas in the short term will be military and defence customers from Brazil and also communications requires that platforms with “heritage”. Therefore Equatorial’s only option is to be a partner with sister company applications. SSTL. This final specification calls for a constellation of 4 Microsatellites. Details on how and who will do finalAIT are still under discussion.

24.4. ON FACILITIES 25.2. ON SMALL SATELLITE MARKET (See previous section “on current projects”) Nanosatellites / Cubesats are for academic purposes. The technology is not ready to offer payloads with interesting capacities.

24.5. ON LAUNCHERS It seems that the tendency and growth of Nanosatellites is consolidating. Brazil should be careful with this as there CIENTEC does not comment on this topic. is not such technological capacity for super miniaturization and this could be a showstopper / game-ender for Brazil in this Small Satellite segment.

24.6. WHAT WOULD AEL EXPECT FROM MDIC? 25.3. ON FACILITIES MDIC should help in providing resources. Despite the fact that the State Government of Rio Grande do Sul has agreed to finance partially the investment,CI ENTEC believe that MDIC could assist to articulate, via FINEP, more Equatorial has a couple of clean rooms for integration and basic testing of components and subsystems. They resources. decided to create these rooms because past operation within the LIT / INPE proved neither practical nor easy. 106 107 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

In Equatorial’s view the final environmental tests such as thermal vacuum tests, vibrations, EMC, etc. should be technology demonstration purposes. done in facilities part of a shared infrastructure and all the previous AIT should be done in house, if possible. Nanosatellites do not have today a real commercial application as miniaturization technology has not reached a level where is can provide interesting payloads to provide commercial services from space.

25.4. ON LAUNCHERS The goal is not to develop products but to develop services. The main actors (Clyde Space, ISIS, GOMSpace) are focusing, wrongly, in developing products instead of services. AEB (Brazilian Space Agency) is the institution coordinating all efforts towards launch in Brazil but in Equatorial’s point of view AEB does not have enough resources or capacities for this. Brazil has, if wanted, enough capacity to develop a Nanosatellite industry. A potential suggestion from Orbital is to create and promote special Brazilian interfaces to help create and protect industry from foreign players. Equatorial has no hopes on the ACS initiative. On Microsatellites (50 – 150 kg): Regarding VLS and VLM: the Ministry of Defence controls them and therefore these developments are not very transparent to the sector. Today there exists a technical viability to reduce 3 to 10 fold the weight of advanced space technology, therefore reducing Minisatellites to Microsatellites. Equatorial believes that the only real opportunity for Brazil is to finalize and consolidate launch business with the VLM Microsatellite launcher. 26.3. ON FACILITIES 26. ORBITAL ENGENHARIA 09/10/2014 –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– -----

Célio Costa Vaz Presitente Director 26.4. ON LAUNCHERS Orbital, as rocket motor provider, is actively involved in Brazilian sounding rocket and VLS programs. 26.1. ON COMPANY (ORBITAL ENGENHARIA) AND PROJECTS 27. GRUPO DE TRABALHO / SMALL SATELLITE WorkGROUP An entrepreneur who worked at INPE at the time founded Orbital Engenharia in 2001. ––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––

Orbital provides capacity and products for: As commented in Chapter 7 of the main Final Report: a very interesting side initiative fruit of the work performed during this Project has been the creation of a special Work Group in Brazil by the MDIC for the push of the Small Satellite industry. • Solar panels The Work Group core members are: MDIC, AEB, INPE, VISIONA. • Liquid propulsion systems for sounding rockets for microgravity experiments. All these actors (AEB, INPE and VISIONA) were already introduced in the main Final Report in Chapter 4 (Brazilian All technology that Orbital provides has be developed in-house throughout the years. They do not believe in initiatives). Although initial separate interviews were held with them, the author believes more interesting to study the international technology transfer programs. However, they are open and have done in the past to partnerships with results and conclusions of the Small Satellite Work Group as a whole as all opinions are taken into account there, and in national universities and technology institutes. a deeper manner than in the initial interviews.

For more information about Orbital please see: http://www.orbital-eng.com The reader is invited to contact the contact at the MDIC to discuss the works of this special Work Group.

OTHER INTERVIEWS 26.2. ON SMALL SATELLITE MARKET –––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––––– On Cubesats/Nanosatellites: Other smaller interviews were held and some others postponed or cancelled. Here is a list of those cases for the record: Orbital believes that, due to low cost and low reliability, these satellites will remain mainly for academic and

108 109 Study on the Brazilian and European Initiatives for the Development of the Micro- and Nano-satellite Industry

ALTRAN SPAIN TOULOUSE SPACE SHOW Held a short and informal meeting with the Business Development Manager for Space related matters. ALTRAN is the Attended the Toulouse Space Show focused on traditional space with most representatives from Airbus Defence & largest engineering firm in Europe in the aerospace sector.I nterview was useful to understand the situation in Spain Space, Thales Alenia Space and French Ministry of Defence. Whilst no official interviews were held for the project, and in Europe as well as to discuss on international collaborations and examples. much interesting insight was collected that was useful for the final report elaboration.

ISDEFE ISU Held a lunch meeting with the Manager for Aerospace Security. ISDEFE is a public company performing engineering Held a meeting with the President and the Dean of the International Space University in Strasbourg, France. The works for Government financed contracts. ISDEFE was suggested by ABDI as a potential interesting actor to interview. meeting was informal but offered much interesting insight and documentation was collected that was useful for the Indeed the discussion was interesting but ISDEFE is not doing, at present, anything with regards to Small Satellites in final report elaboration. Spain.

Université de Montpellier Universidad de Vigo Had email exchange with the Centre Spatiale Universitarire of the Université de Montpellier. The CSU is relatively new Contact via email and phone was made with Professor Fernando Aguado, Director of the Laboratory at the University of but already a reference for the development of Cubesats and the training of students in the nano satellite segment of Vigo, which has already launched several Cubesats into space and is the leader in Spain for Nanosatellite developments. the space sector. Due to busy agendas during the months of June and July no meeting was possible. This university is collaborating with Brazil in the SERPENS Cubesat initiative.

TU Delft CDTI Had email exchange with TU Delft as a key university in Europe in Aerospace and origin of one of the most successful Had email exchange with the Head of the Aerospace Programs department. CDTI is the financing body of the start-ups in small satellites in the world. Due to busy agendas during the months of June and July no meeting was Government for the Technological and Industrial Development. Due to busy agendas during the months of June and possible. July no meeting was possible. During the visit to the Small Satellite conference in Logan, UT in the United States, a series of informal meetings were also held with: INTA TYVAK Had email and phone exchange with the Director of Space Programs. INTA is the national Research Institute for Aerospace Technology. Due to busy agendas during the months of June and July no meeting was possible. SpaceWorks

European Commission – DG ENTERPRISE & INDUSTRY (DG ENTR) Generation Orbit A very interesting meeting was held in Brussels with the main contact at DG ENTR for the Project. It must be reminded that it is the European Commission through its Sector Dialogues that finances the Project. Much interesting insight was New Space Global collected that was useful for the final report elaboration.

Boeing ESA The European Space Agency (ESA) was approached via email towards a specific meeting on Small Satellites but due NASA to busy agendas during the month of July no meeting was possible. In any case the final report contain a section on ESA with a special look at their Business Incubation Centres (BIC) for launch of small start-ups in space business.

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